Chitosan is known to possess excellent properties such as biodegradability, biocompatibility, antimicrobial ac-tivity and less toxicity due to which it has applications in various fields. Another important benefit of chitosan is that it can be processed into different forms like membranes, sponges, gels, scaffolds, microparticles, nano -particles, nanofibers and 3D printed constructs. For these reasons, chitosan has found to be highly advantageous in biomedical field. The reactive amino and hydroxyl groups in its chemical structure make it an ideal candidate for a wide range of applications. However, the compromising mechanical strength of chitosan limits its appli-cations, which can be improved using nanotechnology. Chitosan based nanocomposites have gained significant attention in the last two decades. In the present review, we discuss the advantages of chitosan based nano -composites for biomedical applications majorly tissue engineering, wound dressing and drug delivery. This re-view emphasizes on recent findings concerning the use of innovative chitosan based nanocomposites in biomedical applications. It also covers brief overview of chitosan, its extraction, structure and modifications and its in vitro and in vivo efficacy. Then, a detailed summary of recent progress in biomedical applications are presented. Current chitosan based nanocomposite as product in market, future perspectives and challenges are also discussed.