Metal iodide materials as novel components of thermal biological and medical systems at the interface between heat transfer techniques and therapeutic systems. Due to their outstanding heat transfer coefficients, biocompatibility, and thermally activated sensitivity, metal iodides like silver iodide (AgI), copper iodide (CuI), and cesium iodide (CsI) are considered to be useful in improving the performance of medical instruments, thermal treatment processes, and diagnostics. They are examined for their prospective applications in controlling thermal activity, local heating therapy, and smart temperature-sensitive drug carrier systems. In particular, their application in hyperthermia therapy for cancer treatment, infrared thermal imaging for diagnosis, and nano-based drug carriers points to a place for them in precision medicine. But issues of stability of materials used, biocompatibility, and control of heat—an essential factor that would give the tools the maximum clinical value—remain a challenge. The present mini-review outlines the emerging area of metal iodides and their applications in medical technologies, with a special focus on the pivotal role of these materials in enhancing non-invasive, efficient, and personalized medicine. Over time, metal iodide-based systems scouted a new era of thermal therapies and diagnostic instrumentation along with biomedical science as a whole.