The review discusses the diagnostic application of biosensors as point‐of‐care devices in the COVID‐19 pandemic. Biosensors are important analytical tools that can be used for the robust and effective detection of infectious diseases in real‐time. In this current scenario, the utilization of smart, efficient biosensors for COVID‐19 detection is increasing and we have included a few smart biosensors such as smart and intelligent based biosensors, plasmonic biosensors, field effect transistor (FET) biosensors, smart optical biosensors, surface enhanced Raman scattering (SERS) biosensor, screen printed electrode (SPE)‐based biosensor, molecular imprinted polymer (MIP)‐based biosensor, MXene‐based biosensor and metal–organic frame smart sensor. Their significance as well as the benefits and drawbacks of each kind of smart sensor are mentioned in depth. Furthermore, we have compiled a list of various biosensors which have been developed across the globe for COVID‐19 and have shown promise as commercial detection devices. Significant challenges in the development of effective diagnostic methods are discussed and recommendations have been made for better diagnostic outcomes to manage the ongoing pandemic effectively.