The ability to replicate the microenvironment of the human body through the fabrication of scaffolds is a significant achievement in the biomedical field. However, the search for the ideal scaffold is still in its infancy and there are significant challenges to overcome. In the modern era, the scientific community is increasingly turned to natural substances due to their superior biological ability, lower cost, biodegradability, and lower toxicity than synthetic lab-made products. Chitosan is a well-known polysaccharide that has recently garnered a high amount of attention for its biological activities, especially in 3D bone tissue engineering. Chitosan closely matches the native tissues and thus stands out as a popular candidate for bioprinting. This review focuses on the potential of chitosan-based scaffolds for advancements and the drawbacks in bone treatment. Chitosan-based nanocomposites have exhibited strong mechanical strength, water-trapping ability, cellular interaction, and biodegradability. Chitosan derivatives have also encouraged and provided different routes for treatment and enhanced biological activities. 3D tailored bioprinting has opened new doors for designing and manufacturing scaffolds with biological, mechanical, and topographical properties.