Hexavalent chromium (Cr(VI)) is a well-known toxic heavy metal in industrial wastewater, but in situ and real time monitoring cannot be achieved by current methods used during industrial wastewater treatment processes. In this study, a Sediment Microbial Fuel Cell (SMFC) was used as a biosensor for in situ real-time monitoring of Cr(VI), which was the organic substrate is oxidized in the anode and Cr(VI) is reduced at the cathode simultaneously. The pH 6.4 and temperature 25 °C were optimal conditions for the operation. Under the optimal conditions, linearity (R2 = 0.9935) of the generated voltage was observed in the Cr(VI) concentration range from 0.2 to 0.7 mg/L. The system showed high specificity for Cr(VI), as other co-existing ions such as Cu2+, Zn2+, and Pb2+ did not interfere with Cr(VI) detection. In addition, when the sediment MFC-based biosensor was applied for measuring Cr(VI) in actual wastewater samples, a low deviation (<8%) was obtained, which indicated its potential as a reliable biosensor device. MiSeq sequencing results showed that electrochemically active bacteria (Geobacter and Pseudomonas) were enriched at least two-fold on the biofilm of the anode in the biosensor as compared to the SMFC without Cr(VI). Cyclic voltammetry curves indicated that a pair of oxidation/reduction peaks appeared at −111 mV and 581 mV, respectively. These results demonstrated that the proposed sediment microbial fuel cell-based biosensor can be applied as an early warning device for real time in situ detection of Cr(VI) in industrial wastewaters.