Cells membrane-coated nanoparticles (CMs-NPs) represent a highly promising platform in cancer treatment. Due to the various types of cell sources employed and the broad designs of NPs, CM-NPs have emerged as versatile and multifunctional platforms with wide applicability in medicine. This literature review showcases the applications of CMs-NPs in cancer therapy, highlighting significant advancements in tumor-targeted delivery, phototherapy, and immunotherapy. Different cell types employed as CMs sources are reviewed, including cancer cells, red blood cells, platelets, white blood cells, stem cells, fibroblasts, and bacterium. Hybrid CMs-coatings and the technology to produce them are also included. Additionally, the state of the art in methodologies is critically examined, noting that while effective methods for coating and isolation of CMs exist, further optimization is still required. The latest reports and research findings in this regard are also presented, emphasizing the continuous need for innovation to overcome substantial challenges related to this promising nanotechnology. The aim of this review is to provide an in-depth overview of the evolving landscape in the development of effective and targeted cancer treatments, underscoring the transformative potential of CMs-NPs in revolutionizing cancer care and improving patient outcomes.