The use of cellulose-based compounds in coating and aqueous phase corrosion prevention is becoming more popular because they provide excellent protection and satisfy the requirements of green chemistry and sustainable development. Cellulose derivatives, primarily carboxymethyl cellulose (CMC) and hydroxyethyl cellulose (HEC), are widely employed in corrosion prevention. They function as efficient inhibitors by adhering to the metal's surface and creating a corrosion-inhibitive barrier by binding using their -OH groups. Their inhibition efficiency (%IE) depends upon various factors, including their concentration, temperature, chemical composition, the nature of the metal/electrolyte and availability of synergists (X-, Zn2+, surfactants and polymers). Cellulose derivatives also possess potential applications in anticorrosive coatings as they prevent corrosive species from penetrating and encourage adhesion and cohesion, guaranteeing the metal substrate underneath long-term protection. The current review article outlines the developments made in the past and present to prevent corrosion in both the coating phase and solution by using cellulose derivatives. Together with examining the difficulties of the present and the prospects for the future, the corrosion inhibition mechanism of cellulose derivatives in the solution and coating phases has also been investigated.