Over the past half century, rapid progress has been made in laser-based medical diagnosis and treatment as well as in laser-based medical device fabrication. Lasers have unique capabilities for coating, machining, melting, polymerizing, sintering, and welding materials that are used in implantable and transdermal medical devices. In this review, academic and industrial developments involving laser processing of materials for dental, orthopedic, neural, ophthalmic, cardiovascular, and transdermal applications are described. In addition, laser processing of nanoscale materials for medical applications is discussed. Finally, challenges associated with commercialization of laser biomaterials are considered. Due to the unique capabilities provided by laser-based processes, it is anticipated that the use of laser biomaterials in implantable and transdermal medical devices will markedly increase over the coming years.