The concept of a film that can perform different functions as required by changing external stimuli has long intrigued scientists and engineers. The nanostructure revolution has made possible new uses for ceramic films that behave as multifunctional "smart" materials. In this paper, we first review new developments in traditional uses for multifunctional films, such as those involving electrochromic and thermochromic materials. Next, we describe new uses for multifunctional ceramic films. The design and development of a biocompatible coating that protects blood-interfacing implants against corrosion and mechanical degradation is used as an example of the challenges that face synthesis and characterization of these multifuctional "smart" materials.