Chitin and chitosan were prepared from shrimp shell waste (Penaeus indicus) by enzymatic

deproteinisation in combination with chemical treatment and by conventional chemical method and their qualities compared. Proteolytic enzyme, papain was tested for its efficiency in deproteinisation process of shell waste. Papain deproteinised the shell waste (73.1%) in 72 hr digestion process, whereas, chemical method showed 98% deproteinisation. However, the degree of acetylation was higher (19.4%)in the chitin prepared by enzymatic method than that by chemical method (17.2%). Similarly, qualities of chitosan from enzymatic method were superior with respect to deacetylation and viscosity than that of chemical method.