A technique has been developed to study cellulose pyrolysis by in situ visualization of cellulose transformation in a quartz capillary under a microscope using a CCD camera monitoring system and Raman spectroscopy. The processes and temperature of cellulose transformation during pyrolysis reaction can be observed directly. In situ visualization of reaction revealed that how oil is generated and expulsed concurrently from cellulose during pyrolysis. The in situ visualization result is the first direct evidence to show cellulose pyrolysis transformation. Pyrolysis characteristics were investigated under a highly purified N2 atmosphere using a thermogravimetric analyzer from room temperature to 500°C at the heating rate of 5°C/min. The results showed that three stages appeared in this thermal degradation process. Kinetic parameters in terms of apparent activation energy and pre-exponential factor were determined.