Chitin is a structural polysaccharide and is the second most important natural polymer in the world. The main sources exploited are two marine crustaceans, shrimp and crabs. Chitin is a homopolymer of 1-4 linked 2-acetamido-2-deoxy-尾-D-glucopyranose, although some of the glucopyranose residues are deacetylated and occur as 2-amino-2-deoxy-尾-D-glucopyranose. Despite its huge availability, the utilization of chitin has been restricted by its intractability and insolubility. The fact that chitin is as an effective material for sutures essentially because of its biocompatibility, biodegradability and non-toxicity together with its antimicrobial activity and lowimmunogenicity, points to immense potential for future development. When chitin is deacetylated to more than 50% of the free amine form, it is referred to as chitosan. Chitosan has attracted considerable interest due to its biological activities and potential applications in the food, pharmaceutical, agricultural and environmental industries. In the recent years considerable research efforts have been directed towards establishing a suitable method of extraction of chitosan and approaches to enhance its different properties. Many researchers have focused on application of gamma radiation on chitin and chitosan to obtain a potential bioactive material. This review wishes to provide an overview of the effect of gamma radiation on the extraction of chitosan from exoskeleton of crustacean (prawn shell) based on our and others' latest research results. In addition this review takes a closer look on comparison of physicochemical, thermal and morphological properties of gamma irradiated chitosan with those of the nonirradiated chitosan and potential applications of irradiated chitosan in various fields. From literature survey, it is realized that research activities on uses of gamma radiation on chitosan to improve its biomedical and agricultural applications have increased at the rapid rate. Hence, the present review is timely.