Abstract: Chitosan (CS) is a widely known naturally occurring polysaccharide made of chitin. The Low solubility of chitosan in water restricts its use in medical applications. However, several chemical modifications have made chitosan superior in solubility, biocompatibility, biodegradability, stability, and easy functionalization ability. All these favourable properties have increased chitosan’s application in drug delivery and biomedical fields. Chitosan-based nanoparticles or biodegradable controlled-release systems are of great interest to scientists. Layer -by-layer technique is employed to develop hybrid chitosan composites. Such modified chitosan is widely used in wound healing and several tissue engineering approaches. This review brings together the potential of chitosan and its modified form in biomedical applications.