This article discusses recent advances in biocompatible and biodegradable polymer optical fiber (POF) for medical applications. First, the POF material and its optical properties are summarized. Then, several common optical fiber fabrication methods are thoroughly discussed. Following that, clinical applications of biocompatible and biodegradable POFs are discussed, including optogenetics, biosensing, drug delivery, and neural recording. Following that, biomedical applications expanded the specific functionalization of the material or fiber design. Different research or clinical applications necessitate the use of different equipment to achieve the desired results. Finally, the difficulty of implanting flexible fiber varies with its flexibility. We present our article in a clear and logical manner that will be useful to researchers seeking a broad perspective on the proposed topic. Overall, the content provides a comprehensive overview of biocompatible and biodegradable POFs, including previous breakthroughs, as well as recent advancements. Biodegradable optical fibers have numerous applications, opening up new avenues in biomedicine.