Chitosan is mainly derived from seafood by-products and the thereof chitosan nanoparticles (CNPs) are known as nontoxic, biocompatible, biodegradable and functionalized nanostructures. CNPs, as green fillers, showed an appropriate potential in reinforcement of various biodegradable composites for food packaging and biomedical applications. After evaluation of different fabrication approaches and characterization techniques of CNPs, the changes in physical, mechanical, thermal, structural, morphological, and antimicrobial attributes of nanobiocomposites as a result of CNPs addition are discussed. The influence of bioactive loaded-CNPs and hybrid CNPs with metal nanoparticles, graphene, and montmorillonite in nanocomposites is also presented. Finally, the safety aspects of CNPs-loaded structures are highlighted to evaluate their implementation in food packaging and biomedical systems. It can be concluded that regardless of a few drawbacks, CNPs are promising nanomaterials to improve various operational, structural and antimicrobial properties of biocomposites for various applications in food packaging, delivery systems and biomedical uses.