Owing to their promising applications in electronic and optoelectronic devices, conducting polymers have been continuously studied during the past few decades. Nevertheless, only limited progress had been made in conducting‐polymer‐based sensors until nanostructured conducting polymers were demonstrated for high‐performance signal transducers. Significant advances in the synthesis of conducting‐polymer nanomaterials have been recently reported, with enhanced sensitivity relative to their bulk counterparts. Today, conducting‐polymer nanomaterials rival metal and inorganic semiconductor nanomaterials in sensing capability. However, there are still several technological challenges to be solved for practical sensor applications of conducting‐polymer nanomaterials. Here, the key issues on conducting‐polymer nanomaterials in the development of state‐of‐the‐art sensors are discussed. Furthermore, a perspective on next‐generation sensor technology from a materials point of view is also given.