The development of drug delivery systems always goes hand in hand with the advancement of material science. The novel synthetic or natural functional materials provide opportunities to design optimal drug delivery systems. Among these, chitosan and its derivatives exhibit excellent application future because of its prominent characteristics. In this chapter, research progress of chitosan and its derivatives for drug delivery, from structure to properties, from properties to its application were overviewed. The physicochemical properties, biological properties, biodegradability, safety evaluation and structure modification of chitosan were introduced. Furthermore, applications of chitosan and its derivatives in drug delivery including as the carrier of nanoparticles and microparticles, as coating material, as matrix of hydrogels, films and sustained release tablets, as stabilizers, as absorption enhancers, were discussed. Finally, the applications of chitosan and its derivatives in different administration routes, and their advantages for gene, protein and vaccine delivery, were reviewed. The numerous successful studies on exploitation and application of chitosan and its derivatives showed promising application future of these materials in drug delivery.