Global economy relies on agriculture and hence poor nutrient use efficiency of conventional fertilization is not only a problem for the farmers but also for the researchers. Chitin, the natural biopolymer of the world, next to cellulose, on deacetylation yields chitosan, which has potential uses in diverse domains of agricultural sector, including wastewater treatment, pest and disease resistance and in smart nutrient delivery. Chitosan nanomaterials serve as the available nutrient source of carbon, oxygen, nitrogen and phosphorus to plants. It is biocompatible, biodegradable and ecofriendly and hence has no toxic effects on soil and crops. Chitosan with nanoparticles is used as a controlled release fertilizer thereby reducing the application of chemical fertilizers. Chitosan nanoparticles act as a carrier for delivery of ions slowly when required by the crops due to which the nutrient content in many crops gets increased. They aid in enhanced nutrient uptake by triggering the activity of microorganisms and enzymes like alkaline phosphatase, thereby enhancing the availability of nutrients. The nodulation (NOD) gene responsible for rhizobium activity is triggered which plays a major role in nitrogen fixation in legumes. The safety of using chitosan nanoparticles and the economic feasibility has also been addressed in this review. This review explores the potential use of chitosan nanoparticles as nutrient carrier.