Insects, renowned for their abundant and renewable biomass, stand at the forefront of biomimicry-inspired research and offer promising alternatives for chitin and chitosan production considering mounting environmental concerns and the inherent limitations of conventional sources. This comprehensive review provides a meticulous exploration of the current state of insect-derived chitin and chitosan, focusing on their sources, production methods, characterization, physical and chemical properties, and emerging biomedical applications. Abundant insect sources of chitin and chitosan, from the Lepidoptera, Coleoptera, Orthoptera, Hymenoptera, Diptera, Hemiptera, Dictyoptera, Odonata, and Ephemeroptera orders, were comprehensively summarized. A variety of characterization techniques, including spectroscopy, chromatography, and microscopy, were used to reveal their physical and chemical properties like molecular weight, degree of deacetylation, and crystallinity, laying a solid foundation for their wide application, especially for the biomimetic design process. The examination of insect-derived chitin and chitosan extends into a wide realm of biomedical applications, highlighting their unique advantages in wound healing, tissue engineering, drug delivery, and antimicrobial therapies. Their intrinsic biocompatibility and antimicrobial properties position them as promising candidates for innovative solutions in diverse medical interventions.