Chitin is one of the most abundant natural polysaccharides in the world and it is mainly used for the production of chitosan by a deacetylation process. Chitosan is a bioactive polymer with a wide variety of applications due to its functional properties such as antibacterial activity, non-toxicity, ease of modification, and biodegradability. This review summarizes the most common chitosan processing methods and highlights some applications of chitosan in various industrial and biomedical fields. Finally, environmental concerns of chitosan-based films, considering the stages from raw materials extraction up to the end of life after disposal, are also discussed with the aim of finding more eco-friendly alternatives.