Abstract: A new cellulose excipient suitable for use as a binder, filler, and/or disintegrant in the development of solid dosage forms and as a bodying agent or a drug carrier in the preparation of topical formulations is described. The cellulose excipient is formed by soaking a source of cellulose in an aqueous alkali metal hydroxide solution. The cellulose is then regenerated, washed, and optionally hydrolyzed with a dilute mineral acid. The cellulose excipient is also useful as an aqueous dispersion in topical formulations and in the manufacture of cellulose beads.