In this work, we extracted cellulose from agricultural waste and produced a new straw coating material (ethyl cellulose, EC) through a series of modification operations. The slow-release properties of ethyl cellulose-coated urea (EU) and its absorption and utilization by plants were evaluated. The surface of EU can form a smooth and fine film, and the initial nutrient release rate is only 37.91% that of the uncoated fertilizer. Compared with common urea, the nitrogen of plants cultivated with EU increased by 17.69%, and the leached nitrogen decreased by 61.29%, indicating that EU can reduce nitrogen waste to the greatest extent and continuously supply nutrients to crops. Therefore, the application of EU could be a more practical, environmentally friendly, and sustainable alternative to nitrogen fertilizers.