The functionalization of polymeric substances is of great interest for the development of innovative materials for advanced applications. For many decades, the functionalization of chitosan has been a convenient way to improve its properties with the aim to prepare new materials with specialized characteristics. In the present article, we summarize the latest methods for the modification and derivatization of chitin and chitosan, trying to introduce specific functional groups under experimental conditions, which allow a control over the macromolecular architecture. This is motivated because an understanding of the interdependence between chemical structure and properties is an important condition for proposing innovative materials. New advances in methods and strategies of functionalization such as click chemistry approach, grafting onto copolymerization, coupling with cyclodextrins and reactions in ionic liquids are discussed.