Chitosan is a potentially ideal material for the preparation of paper oil-repellent agent. However, the chitosan is expensive and hygroscopic. On that account, it is necessary to modify the chitosan based oil-repellent agent make it multifunctional as one agent, such as taking into account the functions of water-proof, antibacterial or water vapor barrier at the same time of oil resistance, so as to improve its industrial application value. According to the grease-proof mechanism based on chitosan, the factors influencing its oil repellency performances were summarized. Subsequently, the current research status of water-proof, antibacterial and water vapor barrier chitosan based oil-repellent agent was reviewed. Finally, the development direction of chitosan based oil-proof agents was also pointed out.