The study explores using nanocellulose synthesized from waste paper as an additive in mortar, focusing on its impact on the material’s microstructure. Nanocellulose, derived from waste paper, offers environmental benefits by reducing waste and utilizing low-temperature synthesis methods that decrease energy consumption and carbon emissions. The research evaluates how the addition of nanocellulose influences the microstructural properties of mortar, including porosity, density, pore size distribution, and mechanical strength. The results indicate that incorporating nanocellulose improves mortar’s compressive strength, crack resistance, and water penetration resistance. In particular, nanocellulose enhances the bond between cement particles and aggregates, reduces porosity, and increases the material’s density, making it more durable and resistant to environmental factors. The study highlights the role of nanocellulose in facilitating better dispersion of cement particles, which results in homogeneous pore size distribution and improved material performance. Furthermore, the research compares the effects of nanocellulose, cellulose fiber, and cellulose ash on mortar properties, revealing that nanocellulose provides superior performance in enhancing mortar’s mechanical strength and sustainability. The study’s findings contribute to developing eco-friendly, high-performance building materials by promoting waste paper-derived nanocellulose in construction. Using nanocellulose addresses waste management issues and supports the creation of stronger, more durable, environmentally friendly construction materials.