Cuttlefish chitosan was extracted from the cuttlebone of Sepiella inermis by demineralization and deproteinization and produced by deacetylation, and its physical and chemical parameters were also compared with that of commercial chitosan. Ash, moisture, and mineral and metal content of the chitosan was estimated by adopting standard methodologies. The rate of deacetylation was calculated as 79.64% by potentiometric titration. Through viscometry and gel permeation chromatography, the molecular weight of chitosan was found to be significantly lower than that of the commercial chitosan. Optical activity was found to be levorotatory. The structure of the chitosan was elucidated with spectral techniques such as Fourier-transform infrared (FT-IR) and nuclear magnetic resonance (NMR) spectroscopy. Cuttlefish chitosan showed a melting endothermic peak at 117.32 °C. The x-ray diffraction (XRD) pattern of chitosan and standard chitosan exhibited the same crystalline peaks. Through scanning electron microscopy (SEM) the fine structure of chitosan was studied. The binding capacity (water and fat) of cuttlefish chitosan was found to be significantly higher than that of the commercial chitosan. The antioxidant efficacy of chitosan was determined through the conjugated diene method, scavenging ability on DPPH radicals, reducing power, and chelating ability on ferrous ions. This study has brought out the importance of shell as a potential source for obtaining another natural antioxidant.