<p>Postharvest losses (PHLs) of fruits and vegetables present a significant challenge for the environment, economy, and overall food security. Conventional methods like pesticides, plastic-based petroleum packaging, and synthetic waxes have effectively extended shelf life, but they come with environmental and health concerns. Biopolymer-based edible coatings could be a promising approach that reduces PHLs and offers an eco-friendly alternative to traditional methods. Polysaccharide-based chitosan coatings are considered edible and biologically safe for numerous fruits and vegetables. A wide range of bioactive components (essential oils/plant extracts) can be blended with chitosan to enhance its antioxidant and antimicrobial qualities further. Thus, these bio-coatings can preserve fruits and vegetables for a longer time. This review explores the recently developed chitosan-based edible coatings decorated with bioactive components to mitigate PHLs in fruits and vegetables. There is still a large room to investigate chitosan-derived coatings with other biopolymers and bioactives to develop highly efficient packaging systems that could be employed commercially as a green step to mitigate PHLs. The formulation of these coatings will help attain the United Nations Sustainable Development Goals (SDGs) primarily SDGs 2, 3, 7, and 12 and also align with the latest “BioE3 policy” (Biotechnology for Economy, Employment, and Environment) introduced by the legislation.</p> Graphical Abstract <p></p>