Chitin is one of the most widespread biopolymer found in nature. Shells of crustaceans such as prawns, crabs and lobsters are the main commercial sources of chitin. Chitin can be processed into chitosan, another, having varied industrial and biomedical significance. Lignin is another biomaterial, usually generated from agricultural waste and paper industry. The present work aims at synthesising chitosan from prawn shell and extracting lignin from wheat straw. It is further extended to form biocomposite films using these biomaterials by solution-casting technique. Appropriate analytical tests have been conducted like FTIR, SEM and tensile strength to study functional groups present, surface morphology and mechanical strength of the biomaterials synthesised and biocomposite films formed. The present work has successfully synthesised chitosan from crustacean shells and lignin from wheat straw. The results of analysis are encouraging & indicative of potential of lignin-chitosan biocomposite films specially in packaging of food material and in wound dressings. Use of lignin will reduce chitosan quantity and there by cost. It also utilises waste materials like crustaceans shell & wheat straw successfully in developing value added products chitosan and lignin