Chickpea is the widely consumed dietary legume contributing 18% of global pulse production. Ongoing climatic changes impose several abiotic and biotic stresses on the yield and productivity of chickpeas. Fusarium oxysporum f. sp. ciceris (Foc) is a major soil‐born pathogen which causes up to 100% yield loss. Among the biocontrol strategies to manage the disease problem, the use of chitosan nanoparticles (CNPs) is now emerging as an attractive and beneficial option. CNPs have a major role in mitigating different stress conditions in plants by eliciting a variety of defence responses including pathogen‐related proteins, antioxidants, phytoalexins, proteinase inhibitors, lignin deposition, callose deposition, and so on. This is suggested as an environmentally friendly alternative to chemicals to prevent seed infestation from various pests. It is used as a seed coating agent which acts as a feeding deterrent and barrier to crop pests. Further, chitosan application can mitigate multiple abiotic and biotic stresses. Considering these properties of chitosan will certainly reduce the negative impact of Fusarium on the yield and quality of chickpeas. This review presents an overview of chickpea cultivation, yield losses due to diseases, chitosan application, its derivatives, and mode of action for the management of chickpea wilt in a sustainable manner.