Polymer nanocomposites are one of the important application areas for nanotechnology. Naturally derived organic nanophase materials are of special interest in the case of polymer nanocomposites. Carboxymethyl cellulose is a polyelectrolyte derived from natural materials. It has been extensively studied as a hydrogel polymer. Methods to modify the mechanical properties of gels and films made from CMC are of interest in our lab and in the commercial marketplace. The effect of nano-sized fillers on the properties of CMC-based composites is of interest in the development of novel or improved applications for hydrogel polymers in general and CMC in particular. This project investigated cellulose nanocrystals (CNXLs) as a filler in CMC and compared the effects to microcrystalline cellulose (MCC). The composite material was composed of CMC, MCC or CNXL, with glycerin as a plasticizer. CNXL and MCC concentrations ranged from 5% to 30%. Glycerin concentrations were kept constant at 10%. CNXLs improved the strength and stiffness of the resulting composite compared to MCC. In addition, a simple heat treatment was found to render the nanocomposite water resistant.