 Hydroxyethyl cellulose and methyl cellulose are frequently used with hydrophobic drugs in capsule formulations, to improve the drugs' dissolution in the gastrointestinal fluids.This process is known as hydrophilization.Hydroxyethyl cellulose is also used extensively in the oil & gas industry as a drilling mud additive under the name HEC as well in Industrial applications, paint & coatings, ceramics, adhesives, emulsion polymerization, inks, construction, welding rods, pencils and joint fillers..

Hydroxyethyl cellulose is one of the main ingredients in the personal lubricant KY Jelly.