Cyclic dipeptides (CDPs) are the smallest cyclic peptides containing 2,5-diketopiperazine rings. CDPs have advantages of structures and properties, including excellent hydrogenbonding-forming ability (two hydrogen bonding acceptors and two hydrogen bonding donors), structural rigidity, and enzymatic stability, which make CDPs potential candidates as core scaffolds for drug discovery and building blocks for self-assembly. In this review, we focus on distinctive bioactivities of CDPs, such as antitumor, antimicrobial, antivirus and antioxidant, and self-assembly properties of CDPs and their derivatives. Emphasis will be placed on the thermodynamics and kinetics CDPs self-assembly and applications of self-assembled materials. This review provides insight into the development of CDPs and their corresponding assembled materials as drug delivery carriers and optoelectronic materials.