Abstract: Chitosan, as one of biodegradable polymers, has demonstrated various attractive packaging and antimicrobial properties, which make chitosan as a better candidate over other biopolymers and traditional petroleum-based plastics in food packaging area. Intelligent packaging is used to convey information about food quality and the environment in the packaging. Thus, intelligent indication packaging based on chitosan has been gained much attention on food preservation industry in recent years. In this study, the structure and the source of chitosan are discussed briefly. This study specifically research the packaging and functional properties of chitosan based food packaging material. Moreover, the progress of intelligent indication packaging based on chitosan in food preservation is illustrated in detail, such as sea food, meat, and dairy product. Finally, the development of intelligent indication packaging based on chitosan is described. This study would provide a reference for the development and application of intelligent indication food packaging based on chitosan.