Biosynthesized metal nanoparticles, especially silver and gold nanoparticles, and their conjugates with biopolymers have immense potential in various fields of science due to their enormous applications, including biomedical applications. Polymeric nanoparticles are particles of small sizes from 1 nm to 1000 nm. Among different polymeric nanoparticles, chitosan-coated silver and gold nanoparticles have gained significant interest from researchers due to their various biomedical applications, such as anti-cancer, antibacterial, antiviral, antifungal, anti-inflammatory technologies, as well as targeted drug delivery, etc. Multidrug-resistant pathogenic bacteria have become a serious threat to public health day by day. Novel, effective, and safe antibacterial agents are required to control these multidrug-resistant pathogenic microorganisms. Chitosan-coated silver and gold nanoparticles could be effective and safe agents for controlling these pathogens. It is proven that both chitosan and silver or gold nanoparticles have strong antibacterial activity. By the conjugation of biopolymer chitosan with silver or gold nanoparticles, the stability and antibacterial efficacy against multidrug-resistant pathogenic bacteria will be increased significantly, as well as their toxicity in humans being decreased. In recent years, chitosan-coated silver and gold nanoparticles have been increasingly investigated due to their potential applications in nanomedicine. This review discusses the biologically facile, rapid, and ecofriendly synthesis of chitosan-coated silver and gold nanoparticles; their characterization; and potential antibacterial applications against multidrug-resistant pathogenic bacteria.