Two-dimensional layered materials (2D LMs) are taking the scientific world by storm. Graphene epitomizes 2D LMs with many interesting properties and corresponding applications. Following the footsteps of graphene, many other types of 2D LMs such as transition metal dichalcogenides, black phosphorus, and graphitic-phase C3N4 nanosheets are emerging to be equally interesting as graphene and its derivatives. Some of these applications such as nanomedicine do have a high probability of human exposure. This review focuses on the biological and toxicity effects of 2D LMs and their associated mechanisms linking their chemistries to their biological end points. This review aims to help researchers to predict and mitigate any toxic effects. With understanding, redesign of newer and safer 2D LMs becomes possible.