Storage temperature fluctuation is a major problem faced in food and pharmaceutical industry, apart from prevailing fraud in marketing frozen products as fresh. The present work aimed to study the effect of intrinsic properties of chitosan on synthesis and performance of gold nanoparticles as smart packaging devices. Different types of Chitosan from shrimp waste were used as reducing and capping agent in the synthesis of metal nanoparticle. Time is taken to reduce gold atom to gold nanoparticles varied with the type of reducing agent, between 6 min 40 s to 15 min 02 s. The maximum absorbance ( λmax) for AuNPs was observed between 517 and 530 nm. An increase in the concentration of chitosan resulted in smaller and uniform size AuNPs with size ranging from 8.09 to 9.95 nm compared with 14.44 to 19.88 nm for lower concentration of chitosan. Visible ruby red colour of AuNPs synthesised using trisodium citrate (TSC) and lower concentration of chitosan (0.1%) changed to colourless and grey to blue, respectively upon exposure to frozen condition (−18 °C ± 1 °C). UV Visible spectra indicated distinctly different (broader) spectrum with reduced peak intensity. A visible change in colour from ruby red to bluish and colourless state indicates that irrespective of the properties of available chitosan, it can be used for synthesis of gold nanoparticles as smart packaging to distinguish packed fresh/chilled/refrigerated products from frozen ones.