As a polysaccharide of natural origin, chitosan has many useful features such as non-toxicity, biocompatibility, biodegradability, oil resistance, good mechanical strength and antimicrobial properties. In spite of the unique properties and potential applications of rubber and chitosan, it is necessary to establish appropriate modifications to explore fully the high potential of these polymers. Natural rubber latex is a dispersed form of rubber in aqueous solution and chitosan also dissolves in aqueous acidic medium. The preparation methods are simple and cost effective. No harmful chemicals required for the preparation of the blend. Both the polymers are biodegradable and eco friendly. If the elastomeric phase is sufficiently vulcanized, then the physical and chemical properties of the blend are generally improved. This blend is found to be immiscible with good mechanical, thermal and dye adsorption properties. By reactive compatibilization, water absorption decreases and solvent resistivity, thermal stability, tensile strength and surface hardness increase.