Crustacean shells are a sustainable source of chitin. Extracting chitin from crustacean shells is ongoing research, much of which is devoted to devising a sustainable process that yields high-quality chitin with minimal waste. Chemical and biological methods have been used extensively for this purpose; more recently, methods based on ionic liquids and deep eutectic solvents have been explored. Extracted chitin can be converted into chitosan or nanochitin. Once chitin is obtained and modified into the desired form, it can be used in a wide array of applications, including as a filler material, in adsorbents, and as a component in biomaterials, among others. Describing the extraction of chitin, synthesis of chitosan and nanochitin, and applications of these materials is the aim of this review. The first section of this review summarizes and compares common chitin extraction methods, highlighting the benefits and shortcomings of each, followed by descriptions of methods to convert chitin into chitosan and nanochitin. The second section of this review discusses some of the wide range of applications of chitin and its derivatives.