A process for producing anionic, nonionic, amphoteric or cationic derivatized polysaccharide products which demonstrate high clarity in surfactant-based compositions. The polysaccharide polymer is reacted for a sufficient time and at a sufficient temperature in the presence of water, caustic, and at least one surfactant. The polysaccharide polymer may optionally be reacted with an oxidizing agent, hydrolytic or proteolytic enzymes, molecular weight reducing agents and a cationizing agent and nonionic agent. The formed derivatized polysaccharide has a lower clarity in water than in an aqueous surfactant system. The derivatized polysaccharide product can be used in personal care and or household care products.