Modern seafood processing practices result in amassment of a large volume of waste products, i.e., skin, head, tails, shells, scales, backbones, etc. These waste products may often encompass several high-value products which are still untapped due to the dearth of appropriate management. Moreover, inadequate disposal of waste also has negative implications on both environment and human health. This seafood waste often contains a huge amount of chitin, a polysaccharide that exhibits exceptional inherent characteristics including biocompatibility, biodegradability, antimicrobial, antitumor and antioxidant activities. The present review summarizes the existing methods for recovery of chitin and its derivatives from marine waste. The preparation of chitin nanoparticles was discussed along with blending of chitin and chitosan with other biopolymers. The recent trends of the application of chitin and chitosan nanostructures in various sectors were explored. This review is an attempt to highlight the extraction methods of chitin and chitosan from marine waste resources and its transformation into valuable commercial products as a solution to waste management.