Chitosan is a biopolymer with several biological and agricultural applications. Recently, development of chitosan nanoparticles (CSNPs) adds additional value by further using it as an eco-friendly biostimulant. Therefore, the impact of CSNPs foliar application on the growth, essential oil productivity and antioxidant capacity of chamomile was investigated. Treatments comprised 0, 100, 200, 300 and 400 mg L−1 of CSNPs applied to plants as a foliar spray. CSNPs foliar application improved the growth and productivity of chamomile plants. Relative to the control, the flower yield was increased by 52.10 and 55.74% while the essential oil percentage was increased by 57.14 and 47.06% due to CSNPs at 300 mg L−1 during the two seasons of study. Moreover, CSNPs enhanced the photosynthetic pigments, total soluble sugars and N, P and K percentages. Interestingly, CSNPs increased the antioxidant capacity as measured by total phenolics and the antioxidant activity (DPPH). Collectively, it is suggested that CSNPs might be a promising eco-friendly bio-stimulant and it could be an alternative strategy to improve the productivity, quality and decrease the production cost of chamomile and possibly some other medicinal species.