Currently, nanobiotechnology represents a leading research area that primarily focuses on the safe, eco-friendly synthesis of biocompatible metal oxide nanoparticles. Among these, biosynthesized cerium oxide nanoparticles have particularly received attention in medical science as their unique surface chemistry and dual oxidation state make them excellent antioxidants and freeradical scavengers. Currently, plant extracts are widely explored and employed for the biosynthesis of CeO2NPs. Other biological sources such as marine oyster shell extract, egg-white, biopolymers, e.g., chitosan, agarose, alginate, and others, have also been successfully used for the fabrication of CeO2NPs. This review highlights the recent progress in the biosynthesis of CeO2NPs and the investigation of their medical use as biocompatible anticancer, antibacterial, antifungal, antioxidant, antidiabetic, and wound healing agents. Furthermore, prospects associated with the use of biogenic CeO2NPs in developing novel products in the medical sector are also highlighted.