Nanocellulose has emerged as a potential ‘green’ material owing to its inimitable properties. Furthermore, the significant development in technology has facilitated the design of multidimensional nanocellulose structures, including one-dimensional (1D: microparticles and nanofibers), two-dimensional (2D: coatings), and three-dimensional (3D: hydrogels/ferrogels) composites. In this case, nanocellulose composites blended with magnetic nanoparticles represent a new class of hybrid materials with improved biocompatibility and biodegradability. The application field of magnetic nanocellulose composites (MNCs) ranges from biomedicine and the environment to catalysis and sensing. In this review, we present the major applications of MNCs, emphasizing their innovative benefits and how they interconnect with translational applications in clinics and the environment. Additionally, we focus on the synthesis techniques and role of different additives in the fabrication of MNCs for achieving extremely precise and intricate tasks related to real-world applications. Subsequently, we reveal the recent interdisciplinary research on MNCs and discuss their mechanical, tribological, electrochemical, magnetic, and biological phenomena. Finally, this review concludes with a portrayal of computational modelling together with a glimpse of the various translational applications of MNCs. Therefore, it is anticipated that the current review will provide the readers with an extensive opportunity and a more comprehensive depiction related to the types, properties, and applications of MNCs.