Multi‐color fluorescent nanodiamonds (FNDs) containing a variety of color centers are promising fluorescent markers for biomedical applications. Compared to colloidal quantum dots and organic dyes, FNDs have the advantage of lower toxicity, exceptional chemical stability, and better photostability. They can be surface functionalized by techniques similar to those used for other nanoparticles. They exhibit a variety of emission wavelengths from visible to near infrared, with narrow or broad bandwidths depending on their color centers. In addition, some color centers can detect changes in magnetic fields, electric fields, and temperature. In this article review, we will discuss the current trends in FND’s development, including comparison to the early development of quantum dots. We will also highlight some of the latest advances in fabrication, as well as demonstrations of their use in bioimaging and biosensing.