Chitosan have been successfully produced from the dried shrimp home industry waste (Bangka, Indonesia). Extraction of chitosan was carried out in four steps: deproteinization, demineralization, decolorization and deacetylation of chitin. The effect of deproteinization temperature and NaOH concentration on deacetylation process was studied. The results shown that the increase of deproteinization from 30°C to 90°C causes the decrease of chitosan deacetylation degree (DD). The increase of deproteinization temperature triggers excess depolymerization which damages the chitin structure so that it has a negative effect on the chitosan DD. On the other hand, the increase of NaOH concentration from 20% to 60%, the chitosan DD increased. The diffusion rate of OH” causes increment of OH” attack to the amino group thus realizing the effective deacetylation of chitin. The highest chitosan DD was up to 88.89% is achieved under the optimized conditions of this process and the occurrence of deacetylation structurally demonstrated by the Fourier transform infrared (FTIR) characterization