Chitosan, a naturally derived cationic polysaccharide, and its nanoscale derivative, chitosan nanofibers (ChNFs), have emerged as promising biomaterials for wound dressing applications due to their intrinsic biocompatibility, biodegradability, and broad-spectrum antimicrobial activity. This review provides a comprehensive overview of recent advances in the preparation, modification, and application of chitosan and chitosan nanofibers for wound care. In this review, we first summarize the various origins of chitosan and the preparation methods of ChNFs. Next, we elaborate on various modification strategies for chitosan and ChNFs, such as quaternization, carboxymethylation, and N,N,N-trimethylation. Additionally, fabrication techniques for chitosan and ChNFs based wound dressings, such as electrospinning, solution blow spinning (SBS), microfluidic blow spinning (MBS), and 3D bioprinting, are discussed. The review highlights the applications of chitosan and ChNFs in wound dressings, including hemostasis, diabetic ulcer treatment, burn wound healing, with a special focus on and stimuli-responsive wound dressings. Finally, we address current challenges and propose future directions for enhancing the performance of chitosan and ChNFs based wound healing materials. This review aims to provide a theoretical insights and practical guidance for the next generation of high-performance chitosan-based wound dressings.