Functional metal oxide particles are often added to the polymers to prepare flexible functional polymer com-posites with adequate mechanical properties. ZnO and cellulose nanofibrils (CNF) outstand among these metal oxides and the polymer matrices respectively due to their various advantages. Herein, we in situ prepare ZnO microrods in the presence of CNF, which resultes in a layered composite structure. The ZnO microrods are sandwiched between the CNF layers and strongly bind to highly charged CNF, which provides a better stress transfer during mechanical activity. Digital image correction (DIC) and finite element analysis-based computa-tional homogenization methods are used to investigate the relationship between mechanical properties and composite structure, and the stress transfer to the ZnO microrods. Full-field strain measurements in DIC reveal that the in situ ZnO microrods preparation leads to their homogenous distribution in the CNF matrix unlike other methods, which require external means such as ultrasonication. The computational homogenization technique provides a fairly good insight into the stress transfer between constituents in microstructure as well as a good prediction of macroscopic mechanical properties, which otherwise, would be challenging to be assessed by any ordinary mechanical testing in the layered composites. Finally, we also demonstrate that these composites could be used as physiological motion sensors for human health monitoring.