Chitosan (CS) was prepared from Artemia urmiana cyst shells using the same chemical process as described for the other crustacean species, with minor adjustments in the treatment conditions. The influence of modifications of the CS production process on the physiochemical and functional properties of the CS obtained was examined. The study results indicate that Artemia urmiana cyst shells are a rich source of chitin as 29.3-34.5% of the shell's dry weight consisted of this material. Compared to crab CS (selected as an example of CS from a different crustacean source) Artemia CS exhibited a medium molecular weight (4.5-5.7 x10(5) Da), lower degree of deacetylation (67-74%) and lower viscosity (29-91 centiposes). The physicochemical characteristics (e.g., ash, nitrogen and molecular weight) and functional properties (e.g., water binding capacity and antibacterial activity) of the prepared Artemia CSs were enhanced, compared to control and commercial samples, by varying the processing step sequence.