This paper reviews the latest developments in chitosan-based blends and their potential applications in various fields. Various blends together with other derivatives, such as composites and graft copolymers, have been developed to overcome chitosan’s disadvantages, including poor mechanical properties and to improve its functionality towards specific applications. The progress made in blending chitosan with synthetic and natural polymers is presented. The versatility and unique characteristics, such as hydrophilicity, film-forming ability, biodegradability, biocompatibility, antibacterial activity and non-toxicity of chitosan has contributed to the successful development of various blends for medical, pharmaceutical, agricultural and environmental applications.