In this study an optical cellulose fiber for water sensoring was prepared by using a sequential preparation strategy. The core of the fiber was prepared from dissolved cellulose, in [EMIM]OAc, which was dry–wet spun into water. The cladding layer on the cellulose core was produced by coating a layer of cellulose acetate, dissolved in acetone, using a filament coater. The chemical and optical properties of both regenerated cellulose and cellulose acetate were studied from cast films using ultraviolet–visible and Fourier-transform infrared spectroscopy measurements. Regenerated cellulose film was observed to absorb UV light, passing the visible light wavelengths. Cellulose acetate film was observed to pass the whole light wavelength range. The mechanical strength and topography of the prepared optical cellulose fiber were investigated through tensile testing and SEM imaging. The mechanical performance of the fiber was similar to previously reported values in the literature (tensile strength of 120 MPa). The prepared optical fiber guided light in the range of 500–1400 nm. The attenuation constant of the cellulose fiber was observed to be 6.3 dB/cm at 1300 nm. The use of prepared optical cellulose fiber in a water sensor application was demonstrated. When the fiber was placed in water, a clear attenuation in the light intensity was observed. The studied optical fiber could be used in sensor applications, in which easy modifiability and high thermal resistance are beneficial characteristics.