Nanosensors have become an indispensable tool in the food sector due to their specificity and sensitivity. The biosensor consists of a transducer coupled with a biorecognition component to transform biological signal into digital signal. Nanobiosensors have been widely used for sensing toxic chemicals such as pesticide residues and pathogenic microbes owing to their accurate sensitivity in an affordable manner, which gives more hope to the food industry on their applications. It employs nanocarriers to bind to impurities and pollutants, as well as food‐borne microorganisms and their resulting toxins, such as mycotoxins. This modern technology ensures food safety in food processing industries. Nowadays, nanoparticle‐immobilized sensors act as spot indicators to improve smart food packing technology. Certain types of nanobiosensors are deployed to monitor food product manufacture till packaging and to check the freshness of the product till spoilage identification. They are mainly using enzyme catalysts, which are highly sensitive to extreme environmental conditions. As a result, there is a greater evaluation requirement in nanosensor technology to adopt any temperature, pH, or other difficult parameters. Its stability, while in contact with food substrates, is another criterion that needs to be regularized. Within this framework, this review delves into the latest developments in nanobiosensors and the obstacles encountered during their use across different food industries.