In this study, the gamma ray-induced Maillard reaction method was carried out for chitosan (CTS) and glucosamine (GA) to improve the water solubility and antibacterial activity. The mixture solution of CTS and GA was exposed to gamma rays at a dose of 25 kGy and freeze-dried to obtain a Maillard reaction product (MRP) powder. The physicochemical and biological properties of the CTS-GA MRP powder were investigated. The CTS-GA MRP powder expressed good solubility at a concentration of 0.05 g/mL. In addition, the result of the antibacterial activity test against Escherichia coli revealed that the CTS-GA MRP powder exhibited highly antibacterial activity at pH 7; in particular, bacterial density was reduced by over 4 logs. Furthermore, the cytotoxicity test of the CTS-GA MRP powder on mouse fibroblast cells (L929) showed non-cytotoxicity with high cell viability (>90%) at concentrations of 0.1-1 mg/mL. Owing to the high antibacterial activity and low cytotoxicity, the water-soluble CTS-GA MRP powder can be used as a favorable natural preservative for food and cosmetics.