Chitosan, a biopolymer possessing numerous interesting bioactivities and excellent technological properties, has received great attention from scientists in different fields including the food industry, pharmacy, medicine, and environmental fields. A series of recent studies have reported exciting results about improvement of the properties of chitosan using the Maillard reaction. However, there is a lack of a systemic review about the preparation, bioactivities and applications in food industry of chitosan-based Maillard reaction products (CMRPs). The presence of free amino groups in chitosan allows it to acquire some stronger or new functional properties via the Maillard reaction. The present review aims to focus on the current research status of synthesis, optimization and structural identification of CMRPs. The applications of CMRPs in the food industry are also discussed according to their biological and technological properties such as antioxidant, antimicrobial activities and inducing conformational changes of allergens in food. Some promising directions for future research are proposed in this review, aiming to provide theoretical guidance for the further development of chitosan and its derivatives.