Nowadays point-of care (POC) devices dominate the field of bioanalysis as they play a pivotal role in improving different aspects of diagnostics including screening, early diagnosis, and disease monitoring. These devices comply with the World Health Organization ASSURED criteria that describe the ideal POC tool. While conventional materials like polymers, silicon, metallic foils, and glass have been exploited in POC device manufacturing, recent innovations relying on paper-based materials have introduced a new era of versatile diagnostic tools. Because of their properties, cellulose and its derivatives have emerged as the most common paper-based substrate in device fabrication. The present review explores recent developments in paper-based diagnostics, covering a wide range of applications including reagent storage and isolation/extraction of the analyte and also serving as a sensing platform. The versatility of paper substrates in various diagnostic devices such as lateral flow assays, electrochemical sensors, microfluidics, etc. is discussed, highlighting their advantages, challenges, and limitations on the context of precision medicine.