Topochemical engineering is a method of designing the fractionation (disassembly) and fabrication (assembly) of highly engineered functional materials using a combination of molecular and supramolecular techniques. Cellulose is one of the naturally occurring biopolymers, currently considered to be an important raw material for the design and development of sustainable products and processes. This feature article deals with new insights into how cellulose can be processed and functionalized using topochemical engineering in order to create functional fibers, enhance biopolymer dissolution in water-based solvents, and control the shaping of porous materials. Subsequently, topochemical engineering of cellulose offers a variety of morphological structures such as highly engineered fibers, functional cellulose beads, and reactive powders that find relevant applications in pulp bleaching, enzyme and antimicrobial drug carriers, ion exchange resins, photoluminescent materials, waterproof materials, fluorescent materials, flame retardants, and template materials for inorganic synthesis. The topochemical engineering of biopolymers and biohybrids is an exciting and emerging area of research that can boost the design of new bioproducts with novel functionalities and technological advancements for biobased industries.