In the past decade, fluorescent silver, gold and copper nanoclusters (Ag, Au and CuNCs) have emerged as a new class of signaling moiety for biosensor development. Compared to semiconductor quantum dots, metal NCs have less toxicity concerns and can be more easily conjugated to biopolymers. Due to their extremely small size, these NCs need a stabilizing ligand. Many polymers, proteins and nucleic acids have been reported to stabilize NCs. In particular, many DNA sequences produce highly fluorescence NCs. Coupling these DNA stabilizers with other sequences such as aptamers has generated a large number of biosensors. In this review, the synthesis of DNA and nucleotide-templated NCs is first summarized; their chemical interactions are also discussed. In the second part, the properties of NCs such as fluorescence quantum yield, emission wavelength and lifetime, structure and photostability are briefly reviewed. In the last part, various sensor design strategies using these NCs are categorized into the following four classes: 1) fluorescence de-quenching; 2) generation of templating DNA sequences to produce NCs; 3) change of nearby environment; and 4) reacting with heavy metal ions or other quenchers. Finally, the future trends in this field are discussed.