Chitosan, the second most abundant natural fiber after cellulose, is a partially deacetylated polymer of N-acetyl-d-glucosamine. Chitosan is nontoxic, biodegradable, and biocompatible. It also has film-forming properties. Chitosan is blended with many polymeric materials such as: poly(methyl methacrylate), epoxy, polystyrene, polyaniline, polysulfone, and polycarbonate. Chitosan has been used as a filler as well as a fiber material in thermoplastic polymers. However, polymer/chitosan blends may show incompatibility owing to repulsion between polar chitosan functional groups and hydrophobic polymeric matrices. Other limitations associated with the using chitosan in blends are high moisture absorption, low processing temperature, low heat stability, and low flame resistance. Consequently, the fabrication techniques, miscibility, mechanical strength, morphology, and structural features of polymer/chitosan blends have been investigated. Moreover, chitosan addition as a compatibilizer in blended systems has been explored. There are many potential applications for polymer/chitosan in membrane technology, dye removal, packaging materials, drug delivery, tissue engineering, and biochemical relevance.