Recently, the development of materials based on natural polymers have been observed. This is the result of increasing environmental degradation, as well as increased awareness and consumer expectations. Many industries, especially the packaging industry, face challenges resulting from legal regulations. Chitin is the most common biopolymer right after cellulose and is used to produce chitosan. Due to the properties of chitosan, such as non-toxicity, biocompatibility, as well as antimicrobial properties, chitosan-based materials are used in many industries. Many studies have been conducted to determine the suitability of chitosan materials as food packaging, and their advantages and limitations have been identified. Thanks to the possibility of modifying the chitosan matrix by using natural additives, it is possible to strengthen the antioxidant and antimicrobial activity of chitosan films, which means that, in the near future, chitosan-based materials will be a more environmentally friendly alternative to the plastic packaging used so far. The article presents literature data on the most commonly used natural additives, such as essential oils, plant extracts, or polysaccharides, and their effects on antimicrobial, antioxidant, mechanical, barrier, and optical properties. The application of chitosan as a natural biopolymer in food packaging extends the shelf-life of various food products while simultaneously reducing the use of synthetic plastics, which in turn will have a positive impact on the natural environment. However, further research on chitosan and its combinations with various materials is still needed to extent the application of chitosan in food packaging and bring its application to industrial levels.