The advances in science have resulted in the emergence of nanotechnology, which deals with the design and use of tools and devices of size 1-100 nm. The application of nanotechnologies to medicine is thus termed nanomedicine. Significant research has been focused on this new and exciting field and this review article will describe the basics of nanomedicine. This is followed by its experimental and clinical applications in diagnostics, drug therapy and regenerative medicine. Safety issues of in vivo use of nanomaterials are also discussed. In the future, it is foreseen that nanomedicine will facilitate the development of personalized medicine and will have a major impact on the delivery of better healthcare.