SummaryThis study aimed to determine the functional properties of chitinous materials (CMs) extracted from crustacean shells as multifunctional non‐meat ingredients in emulsified sausage. The CMs were separated from blue crab and crawfish and classified into four types (dehydration, DeH; deproteinization, DeP; demineralization, DeM; deacetylation, DeA) based on the extraction step. Functional properties of different CM types according to the extraction step were assessed using both meat batter and emulsified sausage systems. Among the CMs, the functional characteristics of DeP and DeM exhibited higher binding and emulsion capacity and showed more redness than other CMs (P < 0.05). Compared to the non‐CM added control, the emulsified sausages including CMs showed higher emulsion stability (P < 0.05). The sausages manufactured with DeP or DeM showed higher redness and hardness and lower cooking loss than the control (P < 0.05). During refrigerated storage, emulsified sausages with DeH and DeP inhibited the lipid oxidation compared to those of control (P < 0.05). These findings suggest that DeP or DeM inclusion can improve binding ability and colour as well as lipid oxidation in emulsified sausage. Thus, it can be used as a novel non‐meat ingredient to improve functional and technological properties of processed meat.