The integration of self‐sensing ability and different functional properties of nanomaterials into construction materials leads to smart and multifunctional cementitious sensor composites. Significant evolution of the Structural Health Monitoring (SHM) has helped to elevate the life span and mitigate damages of the structure. Developing smart cementitious sensor composite with electrical properties as a parent element and embedding it in the structural components have proved to be advantageous in terms of evaluating the damages, monitoring the periodic health and life assessment of the structures. In this review, the copious development processes and various methods of designing smart‐sensing cementitious composites have been scrutinized. This work recapitulates the principle of self‐sensing technique, typical functional fillers, trends of percolation threshold, dispersing material, dispersion technology, and also describes the required sensing ability of the sensors using the conduction theory. Subsequently application of smart cement‐sensors in structural components for SHM is discussed. In addition, this review article provides comprehensive information on the effects of nano materials and their dispersion in the development for smart and multifaceted cementitious sensor composites with enhanced sensitivity parameters and economic benefits that are suitable for future prospects.