Carbon nanomaterials with a different character of the chemical bond—graphene (sp2) and nanodiamond (sp3)—are the building bricks for a new class of all-carbon hybrid nanomaterials, where the two different carbon networks with sp3 and sp2 hybridization coexist, interacting and even transforming into one another. The extraordinary physiochemical properties defined by the unique electronic band structure of the two border nanoallotropes ensure the immense application potential and versatility of these all-carbon nanomaterials. The review summarizes the status quo of sp2 – sp3 nanomaterials, including graphene/graphene-oxide—nanodiamond composites and hybrids, graphene/graphene-oxide—diamond heterojunctions, and other sp2–sp3 nanocarbon hybrids for sensing, electronic, and other emergent applications. Novel sp2–sp3 transitional nanocarbon phases and architectures are also discussed. Furthermore, the two-way sp2 (graphene) to sp3 (diamond surface and nanodiamond) transformations at the nanoscale, essential for innovative fabrication, and stability and chemical reactivity assessment are discussed based on extensive theoretical, computational and experimental studies.