Textile has a high structure capacity, is adaptive to multiple situations and is applied in food, energy, environmental, construction and medical industries. Its stable and flexible characteristics are sure to attract even more attention. Biofunctional textile is one of the most important categories of functional textile, taking up 7% of the total amount, and is expected to be the most promising section of growth. Due to the restrict requirement of fibre production, chitosan is one of the few materials that can be spun into pure fibre. The pure chitosan fibre can be blend with other fibres and produce durable functional fabric suitable for medical as well as daily use. This article also reviewed existed modification on chitosan material prepared for fibre spinning and technology related to chitosan-based textile production and discussed the difficulties and possible solutions in chitosan yarn spinning and possible ways of fabric forming.