With a growing population, changes in consumerism behavior and trends in consumption in Indo-Pacific Asia, our seafood processing and consumption practices produce a large volume of waste products. There are several advantages in regulating and sustaining shellfish processing industries. The major advantage of waste management is that it leads to better conservation of natural resources in the long run. Shrimp shell waste contains useful biomaterials, which are still untapped due to inadequate waste disposal and solid waste management. Chitin, the major component of shell waste, can be extracted either chemically or biologically. The chemical extraction approaches, which use acids and alkali, could be an environmental burden. On the other hand, biological methods can be eco-friendly alternatives for shell waste management. In this review, recent trends in management of shellfish waste as sources of chitin, conversion of chitin into chitosan, economic aspects of waste treatment and application of chitosan will be discussed.