As one of the most abundant natural polysaccharides that possess good biological activity, chitosan is extracted from chitin. Its application in the food field is being increasingly valued. However, chitosan extraction is difficult, and its poor solubility limits its application. At present, the extraction methods include the acid-base method, new chemical methods, and biological methods. The extraction rates of chitin/chitosan are 4-55%, 13-14%, and 15-28%, respectively. Different chemical modifications have different effects on chitosan, making it applicable in different fields. This article reviews and compares the extraction and chemical modification methods of chitosan, emphasizing the importance of green extraction methods. Finally, the application prospects of chitosan in the food industry are discussed. This will promote the understanding of the advantages and disadvantages of different extraction methods for chitosan as well as the relationship between modification and application, providing valuable insights for the future development of chitosan.