The present study was conducted to assess the impact of chitosan coating (1%) containing Artemisia fragrans essential oil (500, 1000, and 1500 ppm) as antioxidant and antimicrobial agent on the quality properties and shelf life of chicken fillets during refrigerated storage. After packaging meat samples, physicochemical, microbiological, and organoleptic attributes were evaluated at 0, 3, 6, 9, and 12 days at 4 °C. The results revealed that applied chitosan (CH) coating in combination with Artemisia fragrans essential oils (AFEOs) had no significant (p < 0.05) effects on proximate composition among treatments. The results showed that the incorporation of AFEOs into CH coating significantly reduced (p < 0.05) pH, thiobarbituric acid reactive substances (TBARS), and total volatile base nitrogen (TVB-N), especially for 1% CH coating + 1500 ppm AFEOs, with values at the end of storage of 5.58, 1.61, and 2.53, respectively. The coated samples also displayed higher phenolic compounds than those obtained by uncoated samples. Coated chicken meat had, significantly (p < 0.05), the highest inhibitory effects against microbial growth. The counts of TVC (total viable counts), coliforms, molds, and yeasts were significantly lower (p < 0.05) in 1% CH coating + 1500 ppm AFEOs fillets (5.32, 3.87, and 4.27 Log CFU/g, respectively) at day 12. Organoleptic attributes of coated samples also showed the highest overall acceptability scores than uncoated ones. Therefore, the incorporation of AFEOs into CH coating could be effectively used for improving stability and shelf life of chicken fillets during refrigerated storage.