Industrial applications of microfibrillated cellulose (MFC) and nanofibrillated cellulose (NFC) have been in use for some time; however, there is a need to improve the production steps and at the same time to obtain better quality products. NFC and MFC were generated from -modified kraft pulp, produced from a red gum tree plant (Eucalyptus camaldulensis). The generated NFC and MFC were characterized by high-performance liquid chromatography, Fourier transform infrared (FTIR) spectroscopy, thermogravimetric analysis (TGA) and -nuclear magnetic resonance (NMR). Morphological and viscoelastic properties were investigated by scanning electron microscopy and rheometry, respectively. The storage moduli of biofilms produced from NFC and MFC were investigated by dynamic mechanical thermal analysis (DMTA). Both exhibited mostly identical FTIR spectra. When the spectra were compared with those of -modified kraft pulp, minor shifts were observed due to crystallinity. In NMR spectra, disordered cellulose structures were observed for both NFC and MFC, and these findings were also confirmed by differential scanning calorimetry. Rheology studies revealed that the lowest viscosity was observed with MFC. TGA results showed that NFC degraded earlier compared with -modified kraft pulp. DMTA exhibited that NFC films had about six times higher storage modulus compared with MFC.