Graphene-based materials have garnered significant attention owing to their unique physicochemical properties, exceptionally high surface area, electron mobility, thermal conductivityand mechanical strength. However, graphene has certain limitations viz., irreversible self-agglomeration, low colloidal stability, limited repeatability and non-specificity, which restricts its overall utility. Addressing these issues, functionalization of graphene has been considered as a key strategy that provides augmented properties such as water solubility, biocompatibility, catalytic activity, high surface area, electrical conductivity, and the prevention of agglomeration etc. Thus, various functional groups such as amine, carboxyl and thiol groups have been employed in the fabrication of graphene-based materials for various applications. The present review highlights the synthesis of thiol-functionalized graphene-based materials and their applications in water remediation viz., removal of heavy metal ions and dyes. Additionally, biomedical applications have been addressed in the fields of drug delivery, tumour therapy and biomedical sensors. The present article would help the investigators to develop and explore graphene-based advanced functional materials for addressing real-world issues.