Nanocellulose, typically cellulose nanocrystals (CNCs), has excellent properties and is widely used. In particular, CNC has a small dimension, high chemical reactivity, and high sustainability, which makes it an excellent candidate as a starting material to be converted into nanocellulose derivatives. Chemical modification is essential for obtaining the desired products; the modifications create different functional attachment levels and generate novel microstructures. Recent advances on nanocellulose derivatives have not yet been reviewed and evaluated for the last five years. Nanocellulose derivative materials are being used in a wide variety of high-quality functional applications. To meet these requirements, it is essential for researchers to fully understand CNCs and derivative materials, precisely their characteristics, synthesis methods, and chemical modification approaches. This paper discusses CNC and its derivatives concerning the structural characteristics, performance, and synthesis methods, comparing the pros and cons of these chemical modification approaches reported in recent years. This review also discusses the critical physicochemical properties of CNC derivative products, including solubility, wetting performance, and associated impacts on properties. Lastly, this paper also comments on the bottlenecks of nanocellulose derivatives in various applications and briefly discusses their future research direction.