In this study, diglycidyl ether of bisphenol A (DGEBA) cured cycloaliphatic polyamine was modified with functionalized celluloses for improved thermal and mechanical properties. Three different types of surface-modified cellulose, polyacrylamide-g-cellulose (PGC), aminopropoxysilane-g-cellulose (SGC), and carboxymethyl cellulose (CMC), were investigated and used as reinforcing agents in epoxy resins. The storage modulus of these modified epoxy systems was found to significantly increase with addition of cellulose fillers (up to 1 wt. % cellulose content). An improved fracture toughness (KIC) was also observed with increasing cellulose loading content with PGC and SGC. Among the surface-modified celluloses, epoxy modified with SGC was found to have the highest fracture toughness followed by PGC and CMC at 1.0 wt.% cellulose addition due to the chemical surface compatibility. The toughening mechanisms of the cellulose/epoxy composites, measured by scanning electron microscopy (SEM), revealed that fiber-debonding, fiber-bridging, and fiber-pull out were responsible for increased toughness.