Chitosan, a biopolymer derived from chitin, is widely recognized for its biodegradability, biocompatibility, and non-toxic characteristics. Animal-derived chitosan, extracted primarily from crustacean shells, has been the conventional source for decades. However, fungal-derived chitosan has recently gained traction as a sustainable and hypoallergenic alternative. This extended article explores structural, physicochemical, and biological differences between animal and fungal chitosan, analyzing their advantages, limitations, and potential applications in medicine, agriculture, food packaging, nanotechnology, and environmental science. The paper further highlights recent research developments (2018–2025), sustainability implications, and future perspectives. Comparative graphs, tables, and literature insights are included to provide a comprehensive understanding of bio-composites based on both sources.

Chitosan, Bio-composites, Animal chitosan, Fungal chitosan

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