The ease of formulation and surface modification of gold nanoparticles (AuNPs) by ligands, greater biocompatibility, non-cytotoxicity, and excellent optical properties are the characteristics that necessitate their application in clinical and genomic research. Not only that, but the extensive synthetic chemistry of AuNPs also offers precise control over physicochemical and optical properties owing to the inert, biocompatible, and non-toxic nature of the inner gold core. Another important property of AuNPs involves their incorporation into larger structures, including liposomes or polymeric materials, thereby increasing their capability of drug delivery in concurrent therapy and imaging labels for enhanced diagnostic applications. AuNPs are endowed with physical properties that suggest their use as adjuvants for radiotherapy and bio-imaging and in computed tomography (CT) scans, diagnostic systems, and therapy. Thus, these features strongly endorse the AuNPs in thrust areas of biomedical fields. The diverse properties of gold nanoparticles (AuNPs) have made them promising candidates in biomedical fields, including in the development of theranostics, which encompasses using these gold nanoparticles for both diagnosis and therapy simultaneously. To appreciate these and related applications, a need arises to review the basic principles and multifunctional attributes of AuNPs in relation to their advances in imaging, therapy, and diagnostics.