Nanochitosan, a nanostructured form of chitosan produced from chitin, has become a widely used material with a wide range of applications in a variety of industries. This review summarizes the study on nanochitosan, including its synthesis techniques, distinct physicochemical characteristics, and uses in medicine, agriculture, cosmetics, and cleaning up the environment. The review also emphasizes the impact of synthesis methods such as nanoprecipitation, electrospinning, and chemical modifications on the material's properties and applications. In agriculture, nanochitosan can be used as a long-lasting biopolymer to support crop growth and health. Because it is mucoadhesive and compatible with living things, it can also enhance the effectiveness of medication. The potential of nanochitosan to enhance skin permeability and encapsulate active chemicals in cosmetics presents exciting opportunities for innovation. Furthermore, nanochitosan effectiveness as a biosorbent and antibacterial agent in wastewater treatment highlights its potential to tackle environmental issues. The present study offers valuable perspectives on the present status of nanochitosan research, highlights significant obstacles, and suggests future avenues for optimizing its industrial applications.