An environmentally benign synthesis of a magnetically responsive carboxymethylated cellulose nanofibril-based material is reported. Applied experimental conditions lead to the in-situ formation of magnetite nanoparticles with primary particle sizes of 2.0–4.0 nm or secondary particles of 3.6–16.4 nm depending on whether nucleation occurred between individual carboxymethylated cellulose nanofibrils, or on exposed fibril surfaces. The increase in magnetite particle size on the cellulose fibril surfaces was attributed to Ostwald ripening, while the small particles formed within the carboxymethyl cellulose aggregates were presumably due to steric interactions. The magnetite nanoparticles were capable of coordinating to carboxymethylated cellulose nanofibrils to form large “fibre-like” assemblies. The confinement of small particles within aggregates of reductive cellulose molecules was most likely responsible for excellent conservation of magnetic characteristics on storage of this material. The possibility for using the material in drug delivery applications with release rate controlled by daylight illumination is presented. © 2022 The Author(s)