Chitosan (Chit) is one of the most available natural biopolymer that have been extensively studied for wide range of applications such as biomedical, drug delivery, energy, environmental remediation and food industry. In this review, we have collected and discussed research literature of recent years dealing with modification/functionalization of Chit at the nanoscale and techniques of synthesis of Chit-based materials for application in electrochemical (bio)sensors. Chit-based nanomaterials functionalization strategies and the state-of-art of their incorporation to advance electrochemical (bio)sensors in various fields of applications have been thoroughly discussed together with the most effective methods of Chit deposition (molecular imprinting, layer-by-layer, and electrodeposition) and the role of Chit in biosensing promotion.