There has been an increasing demand for the development of sensor devices with improved characteristics such as sensitivity, low cost, faster response, reliability, rapider recovery, reduced size, in situ analysis, and simple operation. Nanostructured materials have shown great potential in improving these properties for chemical and biological sensors. There are different nanostructured materials which have been used in manufacturing nanosensors which include nanoscale wires (capability of high detection sensitivity), carbon nanotubes (very high surface area and high electron conductivity), thin films, metal and metal oxide nanoparticles, polymer, and biomaterials. This review provides different methods which have been used in the synthesis and fabrication of these nanostructured materials followed by an extensive review of the recent developments of metal, metal oxides, carbon nanotubes, and polymer nanostructured materials in sensor applications.