Functional oligosaccharides have garnered significant interests in the scientific community owing to their diverse biological activities. Presently, there are more than 20 varieties of functional oligosaccharides available in the commercial market, enjoying widespread utilization across various fields. Despite the broad availability of functional oligosaccharides, the industrial production of N-acetyl chitooligosaccharides remains challenging. This is primarily attributed to the inherent difficulties associated with the degradation of chitin, coupled with low conversion rates. However, the production of N-acetyl oligosaccharides offers distinct advantages over other types. Notably, chitin serves as an abundant and cost-effective raw material, thereby presenting a promising avenue for sustainable production practices. Furthermore, the conversion process not only mitigates environmental pollution but also yields functional products with enhanced value. To address the existing challenges and capitalize on the potential of N-acetyl oligosaccharide production, current research endeavors are focused on achieving efficient and eco-friendly production methods. The present chapter aims to explore a plethora of conversion techniques, including chemical, physical, and enzymatic methods, as well as pioneer novel strategies tailored to optimize the production process.