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The cosmetic industry has an undeniable need to design and develop new ecosustainable products to respond to the demands of consumers and international regulations. This requires substituting some traditional ingredients derived from petrochemical sources with new ones with more ecofriendly profiles. However, this transition towards the use of green ingredients in the cosmetic industry cannot compromise the effectiveness of the obtained products. Emerging ingredients in this new direction of the cosmetic industry are chitosan and its derivatives, which combine many interesting physicochemical and biological properties for the fabrication of cosmetic products. Thus, the use of chitosan opens a promising future path to the design of cosmetic formulations. In particular, chitosan’s ability for interacting electrostatically with negatively charged substrates (e.g., skin or damaged hair), resulting in the formation of polymeric films which contribute to the conditioning and moisturizing of cosmetic substrates, makes this polymer an excellent candidate for the design of skin and hair care formulations. This review tries to provide an updated perspective on the potential interest of chitosan and its derivatives as ingredients of cosmetics for skin and hair care.