Raman spectroscopy provides information about the structure, functional groups, and chemical environment of the molecules present in a sample. In recent years, Raman spectroscopic techniques have been extensively used to understand fundamental biology and responses of living systems under diverse physiological and pathological conditions due to its potential to provide multicomponent (chemical) analysis without labeling. Further, Raman spectroscopy provides an upper hand in the study of biofluids in situ owing to low absorption coefficient of water in visible and near‐infrared region in contrast to mid‐infrared region. The incorporation of multivariate data analysis methods provides profound visualization of the complex multicomponent data and thus aid in effective interpretation of Raman spectra. This article reviews recent progress and advents of Raman spectroscopy‐based techniques used for biomedical diagnostics and provides an overview of applications, including biofluids, cells, tissues, and microorganism detection and classification. The spectral information gathered from ex vivo analyses on cells, tissues, and biofluids is important for the interpretation of data acquired in real matrix where it is influenced by unwanted background signals. In the first part of the review, examples on bacterial cells and tissues have been shown to highlight the potential of Raman microspectroscopy to identify and distinguish different bacteria and diseased versus normal tissues. Increased sensitivity of Raman signals have been obtained for the detection of biochemicals such as proteins using surface‐enhanced Raman spectroscopy (SERS) has been depicted. The second half of the article describes the potential of Raman spectroscopy as an in vivo diagnostic tool based on hand‐held fiber probes, spatially offset Raman spectroscopy (SORS) and universal multiple angle Raman spectroscopy (UMARS) along with consideration of clinical translation. In this section, historical development of fiber‐optic Raman probes for biological samples have been described. We have taken specific examples from latest literatures in the field of depth profiling studies to obtain subsurface information toward biomedical diagnostics. Finally, few examples using UMARS towards deep Raman spectroscopy exceeding few tens of millimeters for 3D Raman imaging have been presented.