Presently, the rapid depletion of resources and drastic climate change highlight the importance of sustainable development. In this case, nanochitin derived from chitin, the second most abundant renewable polymer in the world, possesses numerous advantages, including toughness, easy processability and biodegradability. Furthermore, it exhibits better dispersibility in various solvents and higher reactivity than chitin owing to its increased surface area to volume ratio. Additionally, it is the only natural polysaccharide that contains nitrogen. Therefore, it is valuable to further develop this innovative technology. This review summarizes the recent developments in nanochitin and specifically identifies sustainable strategies for its preparation. Additionally, the different biomass sources that can be exploited for the extraction of nanochitin are highlighted. More importantly, the life cycle assessment of nanochitin preparation is discussed, followed by its applications in advanced manufacturing and perspectives on the valorization of chitin waste.