Herein, we present a study on the catalytic evaluation of biocompatible chitosan-stabilized gold nanoparticles (CH-AuNPs) on the oxidation of morin as a model reaction. Biocompatible CH-AuNPs have been characterized through several analytical methods such as TEM, UV-vis, DLS and zeta potential analyses. CH-AuNPs have a small size (10 ± 0.4 nm) with a narrow size distribution and high positive surface charge (+40.1 mV). CH-AuNPs has been demonstrated to be highly active nanocatalysts for the oxidation of morin with the assistance of HO as an oxidant compared with control experiments. The oxidation reaction follows a pseudo-first-order reaction. The kinetic studies show that apparent rate constant (k) is positively correlated with the concentrations of CH-AuNPs and HO, while it is negatively correlated with morin concentration. Furthermore, the reusability tests have been performed and the results demonstrate the long-term stability and reusability of CH-AuNPs without any loss of catalytic activity. Cytotoxicity studies exhibit that CH-AuNPs have low toxicity and they are biocompatible with HeLa and MCF-7 cells.