Functional nanofibers, which cover various aspects of natural and synthetic, organic and inorganic nanofibers, with a particular focus on fabrication via electrospinning. Up to now, electrospun functional nanofibers have served as extremely versatile and optimized material platforms for a great variety of applications, from filtration membranes to highly specialized tissue engineering scaffolds. This review is an attempt to give an overview on electrospinning based functional nanofibers for biomedical applications. This review highlights some of the significant issues which are associated with electrospinning for tissue engineering, with an emphasis on vascular, neural, bone, and skin tissue engineering, as well as drug delivery.