Nano Crystalline Cellulose (NCC) in aqueous suspension gives rise to anisotropic order that leads to iridescence from the fluid phase.Phase separation and order formation were studied using polarized optical microscopy and laser diffraction.Factors affecting liquid crystal phase separation, such as hydrolysis time, wood pulp species, sonication are discussed.Long range order and a phys. grating structure are important to produce iridescence in the bulk fluid liquid crystal phase.Stereomicroscopy showed that retardation lines propagate through the bulk of the fluid.Laser diffraction light experiments reveal features of the time evolution of the bulk grating.The grating structure may be used as tool to cast a chiral iridescence grating for security applications.