<p>Chitosan (CS), a naturally derived and environmentally friendly biopolymer, has garnered substantial attention in tissue engineering due to its excellent biocompatibility, biodegradability, hemostatic activity, anti-inflammatory effects, and intrinsic antibacterial properties. Among its various formulations, electrospun CS nanofibers have emerged as a particularly promising class of materials for skin tissue engineering. These nanofibers exhibit a high surface area, interconnected porous structures, and the ability to mimic the natural extracellular matrix (ECM), thereby promoting cellular functions essential for skin regeneration. This review highlights the extraction and purification processes of chitosan from crustacean shells, fabrication techniques for electrospun nanofibers, and factors involving optimization to achieve desirable structural and functional properties. Surface functionalization methods that enhance biological performance are also discussed. Key biological functions of chitosan such as its hemostatic, antibacterial, antioxidant, anti-inflammatory, angiogenic, immunoregulatory, and cytocompatible properties are critically examined. In addition, the review discusses current challenges related to electrospinning and outlines future directions to support the clinical translation of chitosan-based nanofiber wound dressings. Overall, this comprehensive approach offers practical insights to advance the development of electrospun chitosan nanofiber scaffolds as next-generation skin tissue engineering materials and wound dressings in regenerative medicine.</p> Graphical Abstract <p></p>