Certain cellulose samples, especially those of higher molecular weight, are initially insoluble in N,N-dimethylacetamide (DMAc, 1)/lithium chloride, which is a very common solvent system for cellulosic materials. According to a common protocol, heating or refluxing these samples in DMAc, or in DMAc containing dissolved LiCl, represents one of several so-called `activation' procedures, which are aimed at facilitating subsequent dissolution. In the present work, it is shown that the improved solubility achieved by this method is not only caused by a better activation or improved accessibility of the pulp, but also by a progressing degradation of the cellulosic material (DP loss). The degradation of cellulose in DMAc or DMAc/LiCl is due to two separate chemical processes. The first one, involving N,N-dimethylacetoacetamide (2) which is the primary condensation product of DMAc, causes a slow degradation by thermal endwise peeling. The glucose units peeled off the reducing end are released as furan structures (3). The mechanism appears to be a thermal cleavage of the glycosidic bond, which becomes quite selective towards the proximal anhydroglucose unit by a neighbor group-assisted effect according to quantum-chemical calculations. Due to its stepwise and thus slow mechanism, this pathway contributes only insignificantly to the overall cellulose degradation. The second degradation mechanism causes random chain cleavage and thus pronounced and rather fast changes in the molecular weight distribution. It involves NN-dimethylketeniminium ions (5), whose presence in DMAc/LiCl at temperatures above 80 C-the coalescence temperature of DMAc as determined by dynamic NMR-was unambiguously demonstrated by specific trapping in a thermal [2 + 2]cycloaddition with lipophilic olefins. The keteniminium ion is an extremely reactive electrophile, which is able to directly cleave glycosidic bonds. The detrimental effect of this intermediate on the integrity of cellulosic pulps was confirmed by addition of an external degrading agent of the keteniminium type. Also the precursor compound, a ketene aminal, was confirmed to be present in heated DMAc or DMAc/LiCl by trapping with allyl alcohol in a spontaneous Claisen-type rearrangement.