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The increasing concerns about plastic pollution and climate change have encouraged research into bioderived and biodegradable materials. Much attention has been focused on nanocellulose due to its abundance, biodegradability, and excellent mechanical properties. Nanocellulose-based biocomposites are a viable option to fabricate functional and sustainable materials for important engineering applications. This review addresses the most recent advances in composites, with a particular focus on biopolymer matrices such as starch, chitosan, polylactic acid, and polyvinyl alcohol. Additionally, the effects of the processing methods, the influence of additives, and the outturn of nanocellulose surface modification on the biocomposite's properties are outlined in detail. Moreover, the change in the composites' morphological, mechanical, and other physiochemical properties due to reinforcement loading is reviewed. Further, mechanical strength, thermal resistance, and the oxygen–water vapor barrier properties are enhanced with the incorporation of nanocellulose into biopolymer matrices. Furthermore, the life cycle assessment of nanocellulose and composites were considered to analyze their environmental profile. The sustainability of this alternative material is compared through different preparation routes and options. [ABSTRACT FROM AUTHOR]