Composite polymer hydrogels are of significant interests for high optical transparency and mechanical performance. In this work, a strong and transparent composite hydrogel is developed from a highly mesoporous cellulose network prepared from wood via top-down delignification followed by TEMPO-mediated oxidation and in situ polymerization of PNIPAM. Individualization of cellulose microfibrils inside the wood cell wall is critical for the fabrication of free-standing composite hydrogel with high water content of 94.9 wt% and high optical transmittance of 85.8% with anisotropic light scattering behavior. The composite hydrogel also showed anisotropic mechanical properties with a tensile strength, Young's modulus and toughness of 317 kPa, 5.4 MPa, and 39.2 kJ m- 3 in axial direction, and 152 kPa, 0.31 MPa and 57.1 kJ m- 3 in the transverse direction, respectively. It also showed thermochromic behavior, i.e., reversibly changing between transparent and brightly white by a temperature change between 25 and 40 degrees C, demonstrating great potential for optical applications.