Cellulose has been widely used in papermaking, textile, and chemical industries due to its diverse sources, environmental friendliness, and renewability. Recently, much more attention has been paid to converting cellulose into high-value-added products. Therefore, the extraction of nanocellulose, the dissolution of cellulose, and their applications are some of the most important research topics currently. However, cellulose's dense hydrogen bond network poses challenges for efficient extraction and dissolution, limiting its potential for functional material development. This review discusses the mechanisms of hydrogen bond disruption and weak interactions during nanocellulose extraction and cellulose dissolution. Key challenges and future research directions are highlighted, emphasizing developing efficient, ecofriendly, and cost-effective methods. Additionally, this review provides theoretical insights for constructing high-performance cellulose-based materials.