In recent years, diamond nanoparticles have received a great deal of attention due to their unique photophysical and biological properties. Nanodiamonds (NDs) show low toxicity and are considered to be a highly biocompatible carbon nanomaterial useful in a wide range of applications. Thanks to their ability to accommodate nitrogen-vacancy (N-V) color centers, NDs are a prime example of non-photobleachable fluorescent labels and nanosensors. Here, we present a survey of ND applications in biology and medicine with an emphasis on bioimaging. We focus on distinguishing the properties of detonation NDs and highpressure high-temperature (HPHT) NDs and describing their physicochemical properties, structure and possible modifications by small molecules and biomolecules. We summarize and critically evaluate in vitro and in vivo data on ND toxicity and biocompatibility, cellular internalization, localization and targeting by surface-attached ligands. We discuss current achievements in bioimaging using fluorescent NDs and the potential of NDs in diagnostics and drug delivery.