The strong affinity of chitosan for metal ions and more specifically for precious metals such as palladium and platinum has focused the interest on using this biopolymer as a support for catalytic metals. The manufacturing of hollow chitosan fibers, softly cross-linked with glutaraldehyde, followed by palladium sorption at pH 2 in HCl solutions and further reduction using hydrogen gas, opened the route for the design of a new continuous catalytic system. This material was used for the hydrogenation of nitrotoluene, which was converted into o-toluidine, in methanol solutions. The substrate was circulated inside the lumen of the fiber, while the hydrogen donor (hydrogen gas) was maintained at constant pressure in the outlet compartment of the reactor. Several parameters (substrate concentration, metal content in the fiber, and flow rate) have been tested for their impact on catalytic performance, measured by the turnover frequency (TOF), conversion yield or o-toluidine production, using a surface response methodology for the optimization of the process. Metal content in the fiber revealed a critical parameter; the influence of this parameter was extensively studied through the structural characterization of the fibers using XPS analysis (oxidation state of Pd), X-ray diffraction analysis (size of Pd crystals), TEM analysis (size and distribution of Pd crystals), and diffusion profiles (porosity) in order to correlate catalytic performance to fiber characterization.