The usage of nanomaterials for cancer treatment has been a popular research focus over the past decade. Nanomaterials, including polymeric nanomaterials, metal nanoparticles, semiconductor quantum dots, and carbon-based nanomaterials such as graphene oxide (GO), have been used for cancer cell imaging, chemotherapeutic drug targeting, chemotherapy, photothermal therapy, and photodynamic therapy. In this review, we discuss the concept of targeted nanoparticles in cancer therapy and summarize the in vivo biocompatibility of graphene-based nanomaterials. Specifically, we discuss in detail the chemistry and properties of GO and provide a comprehensive review of functionalized GO and GO–metal nanoparticle composites in nanomedicine involving anticancer drug delivery and cancer treatment.