Chitosan stabilized nanoscale zero-valent iron (CS-NZVI) is a novel composite material with both reducing and adsorption ability, which can be used for the removal of metal ions and arsenates in water and the degradation of aromatic dyes. This paper introduces the main methods and characteristics of CS-NZVI preparation, summarizes the mechanism and application research progress of CS-NZVI treatment of heavy metal ions, arsenic ions, aromatic organic compounds, etc. On this basis, the modification methods, material properties and application progress of several chitosan stabilized nano ferritic derivatives, such as chitosan modified CS-NZVI, metal catalyst modified CS-NZVI and composite modified CS-NZVI, were reviewed. Finally, suggestions and prospects for optimizing the preparation process of CS-NZVI, broadening the application conditions and improving the material properties were put forward, which provided ideas for further research.