The main aim of the work is to convert a low cost renewable biopolymer to a high performance fire‐retardant biomaterial by modification via grafting. Cellulose, a linear and most abundant biomacromolecule, has gained increasing attention for its interesting properties and potential applications in the synthesis of polymer nanocomposites. Cellulose has been grafted with butyl acrylate via emulsifier free emulsion polymerization using in situ developed transition metal complex initiating system: CuSO4/glycine/ammonium persulfate with and without additive kaolin to prepare nanocomposites and copolymer, respectively. The morphology of so‐prepared grafted nanocomposites was characterized by Fourier transform infrared spectroscopy, X‐ray diffraction, and field emission scanning electron microscopy. The enhancement in thermal behavior and mechanical properties of nanocomposites over copolymer were outstanding. The fire‐retardant properties were evaluated by limiting oxygen index and cone calorimetry test. The biodegradation and water absorbency of the fire‐retardant nanocomposites have been carried out for better commercialization and environmental concern. © 2017 Wiley Periodicals, Inc. J. Appl. Polym. Sci. 2018, 135, 45968.