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Chitosan is a natural polysaccharide well-known for its significant biological and chemical properties such as biodegradability, biocompatibility, bioactivity, and polycationicity. It is widely used in the nanomedicine, biomedical engineering and development of new therapeutic drug delivery systems with enhanced bioavailability, specificity and reduced pharmacological toxicity. Chitosan is a natural polymer obtained by deacetylation of chitin. After cellulose chitin is the second most abundant polysaccharide in nature. Different methods of synthesis of chitosan nanoparticles and their applications in nanomedicine, biomedical engineering, industrial and pharmaceutical fields were discussed in this review.