Microgels are soft, deformable, permeable, and stimuli-responsive microscopic polymeric particles that are now emerging as prospective multifunctional soft materials for delivery systems, interface stabilization, cell cultures and tissue engineering. Cellulose microgels are emerging biopolymeric microgels with unique characteristics such as abound hydroxyl structure, admirable designability, multiscale pore network and excellent biocompatibility. This review summarizes the fabrication strategies for microgel, then highlights the fabrication routes for cellulose microgels, and finally elaborates cellulose microgels' bright application prospects with unique characteristics in the fields of controlled release, interface stabilization, coating, purification, nutrition/drug delivery, and bio-fabrication. The challenges to be addressed for further applications and considerable scope for development in future of cellulose microgels are also discussed.