Cellulose degradation in soil is a critical process for nutrient cycling and organic matter decomposition. Enzymatic degradation of cellulose is a sustainable method for producing biofuel, with fungal enzymes playing a central role. Recent research has focused on understanding cellulose degradation mechanisms, the role of cellulases, and the impact of various factors on the process. Cellulose, a major component of lignocellulosic biomass, is composed of cellulose, hemicellulose, and lignin. Bacterial and fungal cellulases are key in breaking down cellulose, with fungal enzymes being more studied. The degradation process involves endo- and exo-cellulases, which work synergistically to break down cellulose into glucose. Cellulose degradation in soil is influenced by factors such as nitrogen availability, temperature, moisture content, pH, and lignin content. Soil microorganisms, particularly fungi and bacteria, play a crucial role in cellulose degradation. The discovery of cellulosomes, complex enzyme systems in anaerobic bacteria, has advanced the understanding of cellulose degradation. Cellulases are classified into various families based on their sequence and function, with the CAZy database providing a comprehensive classification. Recent advances include the discovery of lytic polysaccharide monooxygenases (LPMOs), which enhance cellulose degradation by oxidizing cellulose. The review highlights the importance of studying cellulose degradation in soil, the role of microbial communities, and the potential for developing sustainable and efficient methods for cellulose degradation. Future research should focus on understanding the interactions between soil microorganisms and their impact on cellulose degradation processes. The findings emphasize the need for further research to improve the efficiency and sustainability of cellulose degradation in soil ecosystems.Cellulose degradation in soil is a critical process for nutrient cycling and organic matter decomposition. Enzymatic degradation of cellulose is a sustainable method for producing biofuel, with fungal enzymes playing a central role. Recent research has focused on understanding cellulose degradation mechanisms, the role of cellulases, and the impact of various factors on the process. Cellulose, a major component of lignocellulosic biomass, is composed of cellulose, hemicellulose, and lignin. Bacterial and fungal cellulases are key in breaking down cellulose, with fungal enzymes being more studied. The degradation process involves endo- and exo-cellulases, which work synergistically to break down cellulose into glucose. Cellulose degradation in soil is influenced by factors such as nitrogen availability, temperature, moisture content, pH, and lignin content. Soil microorganisms, particularly fungi and bacteria, play a crucial role in cellulose degradation. The discovery of cellulosomes, complex enzyme systems in anaerobic bacteria, has advanced the understanding of cellulose degradation. Cellulases are classified into various families based on their sequence and function, with the CAZy database providing a comprehensive classification. Recent advances include the discovery of lytic polysaccharide monooxygenases (LPMOs), which enhance cellulose degradation by oxidizing cellulose. The review highlights the importance of studying cellulose degradation in soil, the role of microbial communities, and the potential for developing sustainable and efficient methods for cellulose degradation. Future research should focus on understanding the interactions between soil microorganisms and their impact on cellulose degradation processes. The findings emphasize the need for further research to improve the efficiency and sustainability of cellulose degradation in soil ecosystems.