The chitosan–terephthaldehyde derivative was prepared by conversion of the chitosan gels through the extraction of the solvent, filtration and drying, a greener technique used for processing the materials. The identity of Schiff base was confirmed by UV–vis and Fourier-transform infrared (FTIR) spectroscopy. The chitosan–terephthaldehyde derivative was evaluated by X-ray diffraction (XRD), thermogravimetric analysis (TGA), differential scanning calorimetry (DSC), scanning electron microscopy (SEM), photoluminescence(PL) and rheological study. Photoluminescence (PL) spectrum had shown red shifted at excitation wavelength 254 nm. The rheological study revealed satisfactory behaviour which demonstrates better fluidity as well as moderate viscoelastic strength of the prepared gel. These results suggest that the chitosan–terephthaldehyde derivative material may open a new perspective in biomedical applications.