The promising potential of biomaterials for biomedical applications has spurred conducting intensive studies in this field. Cellulose derivatives are biocompatible polymers with favorable physical and mechanical features. The distinctive properties of cellulose derivatives are gaining significant attention due to their potential for biomedical applications, including tissue engineering, wound dressing, and drug delivery. Carboxymethyl cellulose (CMC), the first and major cellulose derivative has been a promising cellulose-based compound since its development in 20th century. Water solubility, nontoxicity, biocompatibility, chemical stability, biodegradability with no side effects are among the unique attributes that have retained CMC's position as an attractive option for commercial applications, including the biomedical field. In this study, CMC properties and their potential for biomedical applications are discussed. Different methods to produce CMC hydrogels are reviewed. Extensive literature review has been added in terms of synthesis, and applications in biomedical fields. Various authors have demonstrated strong anti-bacterial, and anti-tumor application by elaborating different formulation strategies. This review highlights applications of CMC-based nanocomposites in tissue engineering, wound dressing, and drug delivery.