Optical fiber sensors have emerged as a critical sensing technology across various fields due to their advantages, including high potential bandwidth, electrical isolation that is safe for utilization in electrically hazardous environments, high reliability, and ease of maintenance. However, conventional optical fiber sensors face limitations in achieving high sensitivity and precision. The integration of nanostructures with advanced coating technology is one of the critical solutions to enhancing sensor functionality. This review examined nanostructure coating techniques that are compatible with optical fiber sensors and evaluated etching techniques for the improvement of optical fiber sensing technology. Techniques such as vapor deposition, laser deposition, and sputtering to coat the nanostructure of novel materials on the optical fiber sensors are analyzed. The ability of optical fiber sensors to interact with the environment via etching techniques is highlighted by comparing the sensing parameters between etched and bare optical fibers. This comprehensive overview aims to provide a detailed understanding of nanostructure coating and etching for optical fiber sensing and offer insights into the current state and future prospects of optical fiber sensor technology for sensing performance advancement, emphasizing its potential in future sensing applications and research directions.