N,O-carboxymethyl-chitosans (N,O-CMC) with different degree of substitution (DS) were synthesized under heterogeneous conditions by controlling the reaction temperature. The factors influencing adsorption capacity of N,O-CMC such as the DS of N,O-CMC, initial pH value of the dye solution and adsorption temperature for anionic dye congo red (CR) were investigated. Compared with chitosan (78.90 mg/g), N,O-CMC with the DS of 0.35 exhibited much higher adsorption capacity (330.62 mg/g) for CR at the same adsorption conditions. The adsorption kinetics and isotherms showed that the sorption processes were better fitted by pseudo-second-order equation and the Langmuir equation, respectively. The adsorption mechanism of N,O-CMC was also discussed by means of IR and XPS spectra. The results in this study indicated that N,O-CMC was an attractive candidate for removing CR from the dye wastewater.