Cellulosic waste as a major type of agricultural waste can be acid deconstructed as a carbon source for fermentation application. However, various fermented inhibitors, such as formic acid, furfural, and 5-hydroxymethylfurfural, are also produced during processing. In this study, sugarcane bagasse (SB) was hydrolyzed with sulfuric acid, and atmospheric cold plasma (ACP) was used to remove the toxic inhibitors. The detoxified SB hydrolysate was used as alternative nutrients for bacterial cellulose (BC) production. Results showed that degradation rates of formic acid, 5-hydroxymethylfurfural, and furfural respectively reached 25.2%, 78.6%, and 100% with optimized ACP conditions (argon ACP at 200 W for 25 min). In BC production, the ACP-treated SB hydrolysate group (PT) exhibited high BC production (1.68 g/L) but was lower than that from the ACP-untreated SB hydrolysate group (PUT) (1.88 g/L), which suggests that ACP detoxification might also cause some crucial nutrients loss of the SB hydrolysate, leading to a decrease in BC production. The material properties of BC produced from detoxified based medium are also evaluated. These findings have important implications for the broader domain of ACP detoxification for cellulosic acid hydrolysates applied to BC production.