The reasonable and effective use of lignocellulosic biomass is an important way to solve the current energy crisis. Cellulose is abundant in nature and can be hydrolyzed to a variety of important energy substances and platform compounds—for instance, glucose, 5-hydroxymethylfurfural (HMF), levulinic acid (LA), etc. As a chemical linker between biomass and petroleum processing, LA has become an ideal feedstock for the formation of liquid fuels. At present, some problems such as low yield, high equipment requirements, difficult separation, and serious environmental pollution in the production of LA from cellulose have still not been solved. Thus, a more efficient and green catalytic system of this process for industrial production is highly desired. Herein, we focus on the reaction mechanism, pretreatment, and catalytic systems of LA from cellulose and cellulosic biomass, and a series of existing technologies for producing LA are reviewed. On the other hand, the industrial production of LA is discussed in depth to improve the yield of LA and make the process economical and energy efficient. Additionally, practical suggestions for the enhancement of the stability and efficiency of the catalysts are also proposed. The use of cellulose to produce LA is consistent with the concept of sustainable development, and the dependence on fossil resources will be greatly reduced through the realization of this process route.