Cancer is one of the deadliest diseases worldwide, and there is a critical need for diagnostic platforms for applications in early cancer detection. The diagnosis of cancer can be made by identifying abnormal cell characteristics such as functional changes, a number of vital proteins in the body, abnormal genetic mutations and structural changes, and so on. Identifying biomarker candidates such as DNA, RNA, mRNA, aptamers, metabolomic biomolecules, enzymes, and proteins is one of the most important challenges. In order to eliminate such challenges, emerging biomarkers can be identified by designing a suitable biosensor. One of the most powerful technologies in development is biosensor technology based on nanostructures. Recently, graphene and its derivatives have been used for diverse diagnostic and therapeutic approaches. Graphene-based biosensors have exhibited significant performance with excellent sensitivity, selectivity, stability, and a wide detection range. In this review, the principle of technology, advances, and challenges in graphene-based biosensors such as field-effect transistors (FET), fluorescence sensors, SPR biosensors, and electrochemical biosensors to detect different cancer cells is systematically discussed. Additionally, we provide an outlook on the properties, applications, and challenges of graphene and its derivatives, such as Graphene Oxide (GO), Reduced Graphene Oxide (RGO), and Graphene Quantum Dots (GQDs), in early cancer detection by nanobiosensors.