Liquid crystal (LC) is a particular type of molecule that exhibits directional properties. Its optical birefringence property offers potential non‐contact optical manipulation by optical forces. The optical manipulation of LC in the form of microdroplets shows various potential applications such as biosensors and microactuators. This review discusses the basic concept of LC, the optical manipulation of LC, and its potential applications as LC‐based sensors and microactuators in the form of microdroplets.