•Usage of biodegradable polymer such as cellulose in drug delivery.•Cellulose derivatives, method of preparation and advantages are carried together.•Studies not listed in recent reviews of 2019 are listed here.•Applications of cellulose derivatives in pharmaceutics are reported. Development of effective drug delivery systems by the exploitation of biocompatible, inert nanomaterials has become the thrust areas of research in medicinal chemistry. Out of various materials of significance, one is nanocrystalline cellulose due to its biocompatibility and inertness. Further its surface modification can also be accomplished using variety of methods. In the present review we have compiled different types of nanocellulose and their use as drug delivery systems. The review recapitulate the literature not reported in recent reviews of 2019 and 2020. The review is focused on method of preparation of nanocellulose and its application in oral, transdermal and local drug delivery systems. Limitations and advantages of surface modified nanocellulose is also discussed. Display omitted