Aminoethyl-chitin (AEC) was synthesized in an attempt to both increase solubility of chitin in water and biological activity. AEC was obtained by grafting 2-chloroethylamino hydrochloride onto chitin at C-6 position. The structure of AEC was elucidated FT-IR and (1)H NMR spectroscopy, and its antimicrobial activity was investigated using three Gram-positive and Gram-negative bacteria. The integrity of the cell membranes of the representatives E. coli and S. aureus was investigated by determining the release of intracellular components of cells. When treated with AEC, release of 260 nm absorbing materials quickly increased both E. coli and S. aureus, but absorbance value was different due to the difference in cell structures. For detailed study, outer membrane (OM) and inner membrane (IM) permeabilization assay were performed using the fluorescent probe 1-N-phenylnaphthylamine (NPN) and the release of cytoplasmic beta-galactosidase activity. The results showed that AEC rapidly increased NPN uptake and the release of cytoplasmic beta-galactosidase via increasing the permeability of OM and IM. In addition, cytotoxic effect of AEC was assessed using human lung fibroblast (MRC-5) cell line, and AEC showed less toxic against MRC-5.