There has been great interest in developing new nucleic acid and protein detection methods for both clinical and numerous non-clinical applications. In a long-lasting effort to improve the detection ability of bioassays, functional nanomaterials have been actively explored to greatly enhance the sensitivity during the last two decades. This tutorial review focuses on recent progress in biosensor development by exploiting several unique optical, electronic and catalytic properties of a range of nanomaterials, such as gold nanoparticles, quantum dots, silicon nanowires, carbon nanotubes and graphene. In addition, a perspective on new opportunities offered by emerging technologies (e.g. DNA nanotechnology) is provided.