In the current study, cellulose was extracted from the plant dunchi fiber by using an ecofriendly method followed by preparation of nanocellulose. The procedure involved an alkali treatment and chlorine-free bleaching for removal of lignin and hemicelluloses from material. Fourier transform infrared (FTIR) spectroscopy provided the evidence about removal of hemicellulose and lignin. The morphological changes in the surface of lignocellulosic fibers were studied through scanning electron microscopy (SEM). X-ray Diffraction (XRD) analysis measured the degree of crystallinity of extracted cellulosic material. By using Segal method, the degree of crystallinity was found 66.7%. Crystal thickness was determined by Scherrer equation and its value was found to be 40.07 Å. The values were close to the values observed for commercial microcrystalline cellulose (MCC). The TGA curve showed the thermal degradation pattern of the cellulosic material and it was closed to the thermal behavior of pure cellulose. Finally, nanocellulose was produced by acid hydrolysis from the obtained cellulosic material. Transmission electron microscopy (TEM) showed the existence of nanocellulose with an average aspect ratio of 10.45 ± 3.44. In the future, dunchi fiber has a potential to be used as a renewable source to produce cellulose and subsequently its nanocellulose for a wide range of applications in composite materials.