Chitosan (CS) is a natural polysaccharide isolated from insects, molluscs, and fungi. The specific properties of chitosan can be enhanced using physicochemical processes. The composites prepared using CS and graphene oxide (GO) contain active functional groups such as epoxide, carboxyl, and hydroxyl, which possess excellent biocompatibility, high adsorption capacity, and biodegradability. Their low cost and ease of scale-up make them employable for multiple applications in water-treatment plants, electronics, solar cells, and pharmaceuticals. This review provides an overview of sources, types, and properties of chitin, chitosan, and graphene oxide. The use of these composites for the preparation of anti-microbial drugs has been discussed here. The article also explores the applicability of such composites for removal of heavy metals (lead, copper, chromium, cobalt, mercury, etc.), dyes (methylene blue and other reactive dyes), and organic and inorganic contaminants (ofloxacin, naphthanol, phenol, and oil, etc.). The article highlights various knowledge gaps in the field and the scope of future work.