The paper aimed to investigate the synthesis methods, key properties, and bioavailability-enhancing mechanisms of chitosan nanoparticles, with a particular focus on their mucoadhesive capabilities and protective roles in the gastrointestinal tract and how they are currently advancing in the healthcare and nanotechnology market. Based on the secondary information gathered from a comprehensive literature review, several crucial findings were determined. The mucoadhesive capabilities and protective roles were found to be heavily reliant on temperature and the chemical environment, which suggest that the NPs might not be fully operationalizable yet. Nonetheless, the ongoing research regarding chitosan suggests a hopeful future in the application of chitosan in the oral administration of drugs, especially with the increasing thermal and chemical stability of these compounds. Multiple studies have indicated successful syntheses of CSNPs in a variety of shapes and sizes, each suited to accomplishing a specific task. In addition to enhancements in bioavailability, CSNPs have shown improvements in absorption rates and biocompatibility, indicating trends of growth in the pharmaceutical industry. Most importantly, multiple methods to produce these chitosan nanoparticles at a cheaper price were a pivotal factor in determining the chitosan nanoparticle's greater availability in upcoming years. Hence, from this research, multiple drawbacks and limitations of the current status of chitosan nanoparticles were identified, implying the difficulty for it to be utilized in the oral administration of drugs; however, multiple pieces of research were found displaying an increasing interest and development of the chitosan nanoparticles, suggesting a significant expansion in the pharmaceutical market for the use of targeted drug delivery. Despite current limitations in oral drug administration, ongoing research and growing interest suggest that chitosan nanoparticles hold significant potential for expanding targeted drug delivery in the pharmaceutical and nanotechnology market.