Issues related to global energy and environment as well as health crisis are currently some of the greatest challenges faced by humanity, which compel us to develop new pollution-free and sustainable energy sources, as well as next-generation biodiagnostic solutions. Optical functional nanostructures that manipulate and confine light on a nanometer scale have recently emerged as leading candidates for a wide range of applications in solar energy conversion and biosensing. In this review, recent research progress in the development of photonic and plasmonic nanostructures for various applications in solar energy conversion, such as photovoltaics, photothermal conversion, and photocatalysis, is highlighted. Furthermore, the combination of photonic and plasmonic nanostructures for developing high-efficiency solar energy conversion systems is explored and discussed. We also discuss recent applications of photonic–plasmonic-based biosensors in the rapid management of infectious diseases at point-of-care as well as terahertz biosensing and imaging for improving global health. Finally, we discuss the current challenges and future prospects associated with the existing solar energy conversion and biosensing systems.