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Nanocellulose is the most abundant material extracted from plants, animals, and bacteria. Nanocellulose is a cellulosic material with nano-scale dimensions and exists in the form of cellulose nanocrystals (CNC), bacterial nanocellulose (BNC), and nano-fibrillated cellulose (NFC). Owing to its high surface area, non-toxic nature, good mechanical properties, low thermal expansion, and high biodegradability, it is obtaining high attraction in the fields of electronics, paper making, packaging, and filtration, as well as the biomedical industry. To obtain the full potential of nanocellulose, it is chemically modified to alter the surface, resulting in improved properties. This review covers the nanocellulose background, their extraction methods, and possible chemical treatments that can enhance the properties of nanocellulose and its composites, as well as their applications in various fields.