Rare earth‐doped upconversion nanoparticles (UCNPs) have achieved a wide range of applications in the sensing field due to their unique anti‐Stokes luminescence property, minimized background interference, excellent biocompatibility, and stable physicochemical properties. However, UCNPs‐based sensing platforms still face several challenges, including inherent limitations from UCNPs such as low quantum yields and narrow absorption cross–sections, as well as constraints related to energy transfer efficiencies in sensing systems. Therefore, the construction of high‐performance UCNPs‐based sensing platforms is an important cornerstone for conducting relevant research. This work begins by providing a brief overview of the upconversion luminescence mechanism in UCNPs. Subsequently, it offers a comprehensive summary of the sensors’ types, design principles, and optimized design strategies for UCNPs sensing platforms. More cost‐effective and promising point‐of‐care testing applications implemented based on UCNPs sensing systems are also summarized. Finally, this work addresses the future challenges and prospects for UCNPs‐based sensing platforms.