Nanomedicine is the application of nanobiotechnologies to medicine. This article starts with the basics of nanobiotechnology, followed by its applications in molecular diagnostics, nanodiagnostics, and improvements in the discovery, design and delivery of drugs, including nanopharmaceuticals. It will improve biological therapies such as vaccination, cell therapy and gene therapy. Nanobiotechnology forms the basis of many new devices being developed for medicine and surgery such as nanorobots. It has applications in practically every branch of medicine and examples are presented of those concerning cancer (nanooncology), neurological disorders (nanoneurology), cardiovascular disorders (nanocardiology), diseases of bones and joints (nanoorthopedics), diseases of the eye (nanoophthalmology), and infectious diseases. Safety issues of in vivo use of nanomaterials are also discussed. Nanobiotechnology will facilitate the integration of diagnostics with therapeutics and facilitate the development of personalized medicine, i.e. prescription of specific therapeutics best suited for an individual. Many of the developments have already started and within a decade a definite impact will be felt in the practice of medicine.