Carbon nanotubes are electrically, thermally, and chemically conductive nanoparticles with unique nano-dimensions, unusually strong, and high aspect ratio, which makes them perfect for biomedical applications. Recent researches on carbon nanotubes endow anti-microbial activity against different pathogenic strains of gram-positive (Staphylococcus aureus and S. pyogenes) and gram-negative (Escherichia coli, Klebsiella pneumoniae, and Proteus mirabilis), incorporating carbon nanotubes in scaffold for tissue engineering due to their strong characteristics and conducting properties that enhance cell regeneration, and efficacy in drug delivery techniques. Undesirably, the needle-like manifestation of carbon nanotubes and its physical features lead to toxicity problems as respiratory problems, pulmonary toxicity, agglomeration, or cell death. This report aims to describe the possible potentials of carbon nanotubes and their suitability in various aspects of the biomedical field and also highlight their prospects. The antimicrobial activity, applications in tissue engineering, drug delivery, and the toxicology of carbon nanotubes are also discussed here.