Microbial whole-cell biosensors can be excellent analytical tools for monitoring environmental pollutants. They are constructed by fusing reporter genes (e.g., lux, gfp or lacZ) to inducible regulatory genes which are responsive to the relevant pollutants, such as aromatic hydrocarbons and heavy metals. A large spectrum of microbial biosensors has been developed using recombinant DNA technology and applied in fields as diverse as environmental monitoring, medicine, food processing, agriculture, and defense. Furthermore, their sensitivity and target range could be improved by modification of regulatory genes. Recently, microbial biosensor cells have been immobilized on chips, optic fibers, and other platforms of high-throughput cell arrays. This paper reviews recent advances and future trends of genetically modified microbial biosensors used for monitoring of specific environmental pollutants.