Chitin and its derivative chitosan are natural biopolymers with exceptional biodegradability, biocompatibility, and nontoxicity, making them valuable for various applications. Shrimp shell wastes are among the main sources of chitin and chitosan worldwide, and the conventional chemical extraction process involves demineralization, deproteinization, and deacetylation. However, the use of strong acids and bases leads to significant environmental and economic challenges. In contrast, biotechnological methods such as enzymatic extraction and microbial fermentation offer sustainable alternatives. This chapter aims to provide an overview of biotechnological methods for chitin and chitosan extraction from shrimp shell waste involving enzymatic chitin extraction, microbial fermentation, and biotechnological deacetylation. Enzymatic extraction primarily uses proteolytic enzymes for deproteinization, while microbial fermentation employs lactic acid bacteria for demineralization and protease-secreting microorganisms for deproteinization. Additionally, biotechnological deacetylation studies focus on chitin deacetylase-producing microorganisms to convert chitin into chitosan. Although biotechnological chitin/chitosan extraction from shrimp shells requires further research for economic feasibility and industrial scale-up, advancements in bioprocess technologies improve efficiency and cost-effectiveness. Biotechnological extraction from shrimp shell waste ensures high-quality production while contributing to sustainability and a circular economy.