Lanthanide nanomaterials have garnered significant attention from researchers among the main near-infrared (NIR) fluorescent nanomaterials due to their excellent chemical and fluorescence stability, narrow emission band, adjustable luminescence color, and long lifetime. In recent years, with the preparation, functional modification, and fluorescence improvement of lanthanide materials, great progress has been made in their application in the biomedical field. This review focuses on the latest progress of lanthanide nanomaterials in tumor diagnosis and treatment, as well as the interaction mechanism between fluorescence and biological tissues. We introduce a set of efficient strategies for improving the fluorescence properties of lanthanide nanomaterials and discuss some representative in-depth research work in detail, showcasing their superiority in early detection of ultra-small tumors, phototherapy, and real-time guidance for surgical resection. However, lanthanide nanomaterials have only realized a portion of their potential in tumor applications so far. Therefore, we discuss promising methods for further improving the performance of lanthanide nanomaterials and their future development directions.