A hydrothermal process is a sustainable approach for biorefinery leading to conversion of lignocellulosic (LC) biomass into value-added products. This study is based on the production of xylooligosaccharides (XOS) from pineapple leaves (PL) waste by using mild acid like gluconic acid (GA). GA, when used as catalyst in hydrothermal process to produce XOS the yield improved. The above process can be integrated with bacterial cellulose (BC) production bioprocess via Komagataeibacter europaeus 14,148 where gluconic acid is produced as by-product. Maximum XOS (2–5 degree of polymerisation) yield of 67.79 % in the liquid fraction was obtained via hydrothermal treatment at 160 °C for 60 min with 5% gluconic acid concentration. It is based on the selective solubilization of hemicellulose fraction. Enzymatic hydrolysis of GA hydrothermally pretreated solid fraction of PL biomass gave 14.5 g/L glucose with 5% solid loading and 10 FPU/gds enzyme loading which was employed for Bacterial cellulose production.