Vanadium dioxide (VO2) stands out for its versatility in numerous applications, thanks to its unique reversible insulator-to-metal phase transition. This transition can be initiated by various stimuli, leading to significant alterations in the material’s characteristics, including its resistivity and optical properties. As the interest in the material is growing year by year, the purpose of this review is to explore the trends and current state of progress on some of the applications proposed for VO2 in the field of sensors and actuators using literature review methods. Some key applications identified are resistive sensors such as strain, temperature, light, gas concentration, and thermal fluid flow sensors for microfluidics and mechanical microactuators. Several critical challenges have been recognized in the field, including the expanded investigation of VO2-based applications across multiple domains, exploring various methods to enhance device performance such as modifying the phase transition temperature, advancing the fabrication techniques for VO2 structures, and developing innovative modelling approaches. Current research in the field shows a variety of different sensors, actuators, and material combinations, leading to different sensor and actuator performance input ranges and output sensitivities.