Chitin and chitosan are known to be natural polymers and they are non-toxic, biodegradable and biocompatible. Chemical modification of chitin and chitosan with sulfate to generate new bifunctional materials is of interest because the modification would not change the fundamental skeleton of chitin and chitosan, would keep the original physicochemical and biochemical properties and finally would bring new or improved properties. The sulfated chitin and chitosan have a variety of applications, such as, adsorbing metal ions, drug delivery systems, blood compatibility, and antibacterial field. The purpose of this review is to take a closer look about the different synthetic methods and potential applications of sulfated chitin and chitosan. Based on current research and existing products, some new and futuristic approaches in this context area are discussed in detail. From the studies reviewed, we concluded that sulfated chitin and chitosan are promising materials for biomedical applications.