Chitin is one of the most abundant natural polysaccharide on earth. Different crustaceans, molluses, marine diatoms, insects, algae, fungi and yeast synthesize it. According to the amount of chitin produced annually over the world, it is second abundant polymer next to cellulose. Recent investigations confirm the suitability of chitin and its derivatives in chemistry, biotechnology, medicine, and food processing, environmental protection and also used as a safe excipient in drug delivery formulations. Our present study focused that on the isolate the prawn shell waste and conversion to chitosan.Chitosan was characterized using IR spectrum and compared with standard to confirm the presence of chitosan in the shell of prawn. We attempted to incorporate latex milk of Euphorbia neriifolia, which has potent medicinal properties with chitosan and check its antimicrobial activity. The results of the present study proved the antimicrobial activity exhibited by the samples incorporated in medical textiles on test organisms is system, since it could be due to pathogenic microorganisms.