Nanocellulose, a promising polymer derived from lignocellulosic sources, is utilized in various applications such as paper production, water purification, wound dressing, scaffolds, biosensors, super-disintegrants, cosmetics, and drug delivery systems. The study investigates the production of optimized nanocellulose size using response surface methodology, examining the impact of factors like sulphuric acid concentration and temperature on the acid hydrolysis process. The central composite design was used to screen and adjust the design matrix with two-factor levels. The optimized size of nanocellulose was found to be 364.1 nm, with a zeta potential of −40.6, which shows long-term stability. Hence, process variables like sulphuric acid of 48.29% v/v and temperature of 39.7 °C were optimized to get the desired particle size from commercial cellulose. An Analysis of Variance (ANOVA) was applied to determine the primary parameters that have a significant impact on the particle size of nanocellulose. Thus, the obtained nanocellulose was characterized using FTIR, XRD, DLS and TEM analysis. FTIR confirms that the functional groups of cellulose are similar in nanocellulose. As the XRD illustrates, 67% of the crystallinity index in the developed nanocellulose is semicrystalline. The particle size was found within the nm size by employing the DLS method. Nanocellulose was characterized using TEM for surface morphology. Thus, obtained nanocellulose is widely used in various pharmaceutical applications like tissue engineering, cosmeceuticals, wound healing, scaffolds, aerogels, hydrogels, and controlled release of drugs.