A novel synthesis of eco-friendly bioplastic film made of chitosan extracted from crab shell is presented in the current study. Crab shell use can result in a reduction in marine waste management. The extracted chitosan has a broad variety of applications in the food industry as a food preservative due to its antibacterial function. A novel procedure for preparing chitosan from crab shells was developed. In the present study, chitosan extracted from crab shell through deproteinization, demineralization and followed by deacetylation. Characterization of extracted chitosan was done by FTIR, and SEM was used to record the photomicrograph image of extracted chitosan. The antibacterial activity of extracted chitosan was studied against Staphylococcus aureus and Escherichia coli. The bio-plastic film was synthesized using the extracted chitosan by adding glycerol as plasticizer along with citric acid, and agarose to the mixture to develop bioplastic film. FTIR vibrations patterns showed stretching of hydroxyl (O-H), amine (N-H) and carbonyl (C-O) groups which indicated the presence of chitosan. The change in the morphology of samples was followed by SEM. It is concluded that the procedure developed in the present work showed that the extracted chitosan is suitable for the preparation of ultra-thin, labile, bioplastic film with good apparent texture. The advantages of the developed product could be its biodegradability, biocompatibility, and effective use as biomedical interface.