Fast and sensitive determination of biologically active compounds is very important in biomedical diagnostics, the food and beverage industry, and environmental analysis. In this review, the most promising directions in analytical application of conducting polymers (CPs) are outlined. Up to now polyaniline, polypyrrole, polythiophene, and poly(3,4-ethylenedioxythiophene) are the most frequently used CPs in the design of sensors and biosensors; therefore, in this review, main attention is paid to these conducting polymers. The most popular polymerization methods applied for the formation of conducting polymer layers are discussed. The applicability of polypyrrole-based functional layers in the design of electrochemical biosensors and biofuel cells is highlighted. Some signal transduction mechanisms in CP-based sensors and biosensors are discussed. Biocompatibility-related aspects of some conducting polymers are overviewed and some insights into the application of CP-based coatings for the design of implantable sensors and biofuel cells are addressed. New trends and perspectives in the development of sensors based on CPs and their composites with other materials are discussed.