Fed-batch fermentation was used for biomass and fungal chitosan production by Aspergillus terreus (BCRC 32068) grown in a potato dextrose agar medium. The polysaccharides were extracted by an alkali–acid treatment, and structural investigations by X-ray diffraction, Fourier transform infrared analysis, and viscosity and thermal analysis were done. A high level of chitosan was extracted from A. terreus; this implied that it was feasible to produce chitosan from industrial waste mycelia. Fungal chitosan derived from A. terreus showed the highest adsorption capacity for Sn(II). The order of Sn(II) adsorption capacity for these chitosanaceous materials was Fungal chitosan > Chitin > Biomass. Fungal chitosan derived from A. terreus was well correlated with Langmuir's isotherm model. The maximum capacity for Sn(II) sorption deduced from the use of the Langmuir isotherm equation was 303 mg/g; this was significantly higher than that of A. terreus. Fungal chitosan is an easy and cost-effective material for the abatement of pollution. © 2014 Wiley Periodicals, Inc. J. Appl. Polym. Sci. 2014, 131, 40436.