In the past decade, there has been phenomenal progress in the field of nanomaterials, especially in the area of carbon nanotubes (CNTs). In this review, we have elucidated a contemporary synopsis of properties, synthesis, functionalization, toxicity, and several potential biomedical applications of CNTs. Researchers have reported remarkable mechanical, electronic, and physical properties of CNTs which makes their applications so versatile. Functionalization of CNTs has been valuable in modifying their properties, expanding their applications, and reducing their toxicity. In recent years, the use of CNTs in biomedical applications has grown exponentially as they are utilized in the field of drug delivery, tissue engineering, biosensors, bioimaging, and cancer treatment. CNTs can increase the lifespan of drugs in humans and facilitate their delivery directly to the targeted cells; they are also highly efficient biocompatible biosensors and bioimaging agents. CNTs have also shown great results in detecting the SARS COVID-19 virus and in the field of cancer treatment and tissue engineering which is substantially required looking at the present conditions. The concerns about CNTs include cytotoxicity faced in in vivo biomedical applications and its high manufacturing cost are discussed in the review.