The present article describes the synthesis of the N-(Lys-Gly-Tyr-Gly)-chitosan using the water-soluble active ester method, the preparation of the N-(Lys-Gly-Tyr-Gly)-chitosan-gellan hybrid fibers, and the reinforcement of the hybrid fibers by enzymatic cross-linking between the N-grafted peptides chains of chitosan. The cationic polysaccharide chitosan was treated with Boc-Lys(Z)-Gly-Tyr(Bzl)-Gly (4-hydroxyphenyl)dimethylsulfonium methyl sulfate ester in DMF-0.15 M acetic acid to incorporate the peptides into the side chain amino groups of chitosan followed by the acidic removals of the Z and Bzl groups. The degrees of N substitution were estimated to be 2.0 and 10 molar % by changing the molar ratios of the amino groups of the parent chitosan and the active ester. The resulting cationic N-(Lys-Gly-Tyr-Gly)-chitosan was spun into the hybrid fibers with the anionic polysaccharide gellan in water. The tensile strengths of the N-(Lys-Gly-Tyr-Gly)-chitosan hybrid fibers were superior to those of the original chitosan-gellan fibers. The mechanical strengths of the hybrid fibers further increased upon enzymatic oxidation using tyrosinase. Based on these results, we concluded that the covalent cross-linking due to the enzyme oxidation between the grafted peptides significantly contributed to reinforcement of the polysaccharide hybrid fibers. The present results afford a new methodology for the reinforcement achieved by the polymer modification inspired by a biological process.