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Palladium nanoparticles (Pd NPs) showed great potential in biomedical applications because of their unique physicochemical properties. Various conventional physical and chemical methods have been used for the synthesis of Pd NPs. However, these methods include the use of hazardous reagents and reaction conditions, which may be toxic to health and to the environment. Thus, eco-friendly, rapid, and economic approaches for the synthesis of Pd NPs have been developed. Bacteria, fungi, yeast, seaweeds, plants, and plant extracts were used to prepare Pd NPs. This review highlights the most recent studies for the biosynthesis of Pd NPs, factors controlling their synthesis, and their potential biomedical applications.