Chitosanases (EC 3.2.1.132) are glycosyl hydrolases that catalyse the endohydrolysis of β-1,4-glycosidic bonds of partially acetylated chitosan to release chitosan oligosaccharides (COS). Chitosanases are isolated, purified and characterised from different sources mainly from bacteria and fungi. Chitosanases have received much attention due to their wide range of applications including the preparation of bioactive COS and fungal protoplasts, as biocontrol agent against pathogenic fungi and insects, the bioconversion of chitinous bio waste associated with seafood processing, etc. Bioactive COS produced by the enzymatic hydrolysis of chitosan have finds numerous health benefits as well as other biological activities. This review summarizes the recent advances in chitosanases research, the enzyme production processes, characterization, genetic improvement and their applications.