Chitosan is a naturally available biopolymer, having numerous applications due to its unique physico-chemical properties. Kaolinite is one of the abundantly available clay, combining these two materials imparts excellent properties suitable for various applications. Although various chitosan-based composites are developed greater attention is focused on kaolinite- chitosan composites in recent years. This chapter discusses developments in various kaolinite- chitosan nanocomposites and their applications particularly in medical, pharmaceutical, wastewater treatment and food and packaging industries. First, discussion on chitosan and kaolinite is given, then kaolinite- chitosan nanocomposite fabrication, advances, development and followed by various applications of chitosan-kaolinite nanocomposites. Finally concluding remarks are presented to summarize latest developments in this area. Challenges and future perspectives are also given in conclusions to guide the research directions.