Colloidal nanoparticle biosensors have received intense scientific attention and offer promising applications in both research and medicine. We review the state of the art in nanoparticle development, surface chemistry, and biosensing mechanisms, discussing how a range of technologies are contributing toward commercial and clinical translation. Recent examples of success include the ultrasensitive detection of cancer biomarkers in human serum and in vivo sensing of methyl mercury. We identify five key materials challenges, including the development of robust mass-scale nanoparticle synthesis methods, and five broader challenges, including the use of simulations and bioinformatics-driven experimental approaches for predictive modeling of biosensor performance. The resultant generation of nanoparticle biosensors will form the basis of high-performance analytical assays, effective multiplexed intracellular sensors, and sophisticated in vivo probes.Evolution has given rise to organisms of staggering complexity. Our now extensive knowledge of biological systems pales in comparison to the remaining mysteries. Unraveling these requires tools that probe the molecular machinery of life and provide detailed feedback on complex networks of subtle interactions. Such tools are cornerstones of biomedical research and practice, and improvements in these lead directly to a better understanding of fundamental biology, monitoring of health, and diagnosis of disease. Colloidal nanoparticle biosensors are a class of biological probe that will not only yield improved biological sensing but also provide a step change in our ability to probe the biomolecular realm. Nanoparticles can act as high-performance sensors because nanomaterials exhibit unique and useful behaviors not present in their bulk form: for example, bright tunable fluorescence from semiconductor nanoparticles and localized surface plasmon resonance (LSPR) phenomena in metallic nanoparticles. These particles exhibit intense responses to incident light (or other stimuli), and the ability to modulate this response by interaction with target analytes makes them excellent biosensor signal transducers. Outputs can be quantitative or qualitative depending on the functionality of