Homogeneous acetylation of cellulose dissolved in the dimethyl sulfoxide(DMSO)/paraformaldehyde(PF) system was investigated. Characterization of the acetylated products was performed to evaluate the dissolution mechanism. The dissolution reactions are reasonably divided into three steps: (1)immediately after the dissolution, initial methylolation of cellulose; (2)further methylolation to form oligo-oxymethylene side chains on the cellulose backbone; (3)de-methylolation, that is, the break down of the side chain by prolonged heating. The possible methylolation reaction sites are all hydroxyls of the anhydrous glucose unit while the C-6 position is most reactive. Manipulation of the side chain lengths by control of the dissolution conditions makes it possible to prepare acetates with different thermal properties: Tg varied 35°-102.5°C and Tm 65° -122.5°C, depending upon the side chain length. Triethylamine(TEA) was prefered to pyridine, as a promotor of acetylation, in order to understand the dissolution mechanism.