Bacterial cellulose (BC), an environmental friendly polymeric material, has recently received immense attention in the human society. Herein, we have focused on the biosynthesis, chemical structure, and physiological behavior of BC along with synthetic routes and medical applications of its nanocomposites. The structure of BC consists of nanofibrils made up of (1 → 4) β-glycosidic linked glucose units interconnected through intra-and intermolecular hydrogen bonds. The interconnected 3D network structure of BC nanofibers with a high degree of nanoporosity makes BC an ideal candidate for the incorporation of nanomaterials to form reinforced composites. BC nanocomposites have been synthesized through a number of routes that have not only improved the existing properties of BC, but also enhanced it with novel features. Among nanomaterials, metal, metal oxides, and organic nanomaterials have been effectively used to engender antimicrobial, biocompatible, conductive, and magnetic properties in BC. BC nanocomposites have been successfully employed in the medical field and have shown a high clinical value for wound healing and skin tissue repair. Recent interest has been focused on designing ideal biomedical devices like artificial skin and artificial blood vessels from BC. This study will provide an extensive background about the primary features of BC and discuss the synthetic routes and chemical feasibility of BC nanocomposites along with their current and future application in the medical field.