Submicron biomaterials have recently been found with a wide range of applications for biomedical purposes, mostly due to a considerable decrement in size and an increment in surface area. There have been several attempts to use innovative nanoscale biomaterials for tissue repair and tissue regeneration. One of the most significant metal oxide nanoparticles (NPs), with numerous potential uses in future medicine, is engineered cerium oxide (CeO2) nanoparticles (CeONPs), also known as nanoceria. Although many advancements have been reported so far, nanotoxicological studies suggest that the nanomaterial’s characteristics lie behind its potential toxicity. Particularly, physicochemical properties can explain the positive and negative interactions between CeONPs and biosystems at molecular levels. This review represents recent advances of CeONPs in biomedical engineering, with a special focus on tissue engineering and regenerative medicine. In addition, a summary report of the toxicity evidence on CeONPs with a view toward their biomedical applications and physicochemical properties is presented. Considering the critical role of nanoengineering in the manipulation and optimization of CeONPs, it is expected that this class of nanoengineered biomaterials plays a promising role in the future of tissue engineering and regenerative medicine.