Nanostructured materials including nanoparticles, nanowires, nanobands and carbon nanotubes (CNT) have been intensively investigated due to their fantastic size effect and superior chemical and physical properties and functions. Nanocomposites can be fabricated not only with different nanostructured materials, but also with various biomolecules and conducting polymers to possess unique hybrid properties characteristic of neither the incorporated components nor the host matrices. The nanocomposites may be confined in nanoscale domains in one, two, or three dimensions for the unusual size-dependent behavior. The synergistic effects of the components lead to broad bioapplications of the nanocomposites such as biosensors, drug delivery systems and biofuel cells. A review of studies on nanocomposites from design, fabrication to their biocompatibility and electrochemical bioapplications is presented.