Microcrystalline cellulose (MCC) is a fractional portion of cellulose, obtained through the acid hydrolysis of plant-derived cellulose fibres. Unlike raw cellulose, MCC has a high degree of crystallinity and a finer particle size which make it highly valued in multiple applications. In recent decades, MCC has emerged as a critical material in various industries due to some of its unique properties which includes renewability, biocompatibility, and mechanical strength. This comprehensive review examines the structural characteristics of MCC, including its crystallinity, degree of polymerization (DOP), and surface morphology. It also covers the different sources and isolation methods of MCC and discusses recent advancements in production techniques. This current study also explores the applications of MCC across various industries, including pharmaceuticals, food, cosmetics, and polymer composites. It examines MCC's functions as a binder, disintegrant, texturizer, and stabilizer. Additionally, it also addresses current limitations in MCC use, such as moisture sensitivity and compatibility with certain polymeric matrices, and discusses emerging opportunities to address these challenges. Apart from that, MCC can be effectively used in Solar Cell Applications. By integrating the research and technological advancements, this review provides valuable insights into the future potential of MCC as a sustainable and versatile material for both existing and new applications.