Recently, the utilization of metal halide perovskites in sensing and their application in environmental studies have reached a new height. Among the different metal halide perovskites, cesium lead halide perovskites (CsPbX3; X = Cl, Br, and I) and composites have attracted great interest in sensing applications owing to their exceptional optoelectronic properties. Most CsPbX3 nanostructures and composites possess great structural stability, luminescence, and electrical properties for developing distinct optical and photonic devices. When exposed to light, heat, and water, CsPbX3 and composites can display stable sensing utilities. Many CsPbX3 and composites have been reported as probes in the detection of diverse analytes, such as metal ions, anions, important chemical species, humidity, temperature, radiation photodetection, and so forth. So far, the sensing studies of metal halide perovskites covering all metallic and organic–inorganic perovskites have already been reviewed in many studies. Nevertheless, a detailed review of the sensing utilities of CsPbX3 and composites could be helpful for researchers who are looking for innovative designs using these nanomaterials. Herein, we deliver a thorough review of the sensing utilities of CsPbX3 and composites, in the quantitation of metal ions, anions, chemicals, explosives, bioanalytes, pesticides, fungicides, cellular imaging, volatile organic compounds (VOCs), toxic gases, humidity, temperature, radiation, and photodetection. Furthermore, this review also covers the synthetic pathways, design requirements, advantages, limitations, and future directions for this material.