In order to deduce the molecular mechanisms of biological function, it is necessary to monitor changes in the sub-cellular location, activation and interaction of proteins within living cells in real time. Förster resonance energy transfer (FRET)-based biosensors that incorporate genetically encoded, fluorescent proteins permit high spatial resolution imaging of protein–protein interactions or protein conformational dynamics. However, non-specific fluorescence background often obscures small FRET signal changes, and intensity-based biosensor measurements require careful interpretation and several control experiments. These problems can be overcome by using lanthanide (Tb(III) or Eu(III)) complexes as donors and green fluorescent protein (GFP) or other conventional fluorophores as acceptors. Essential features of this approach are the long-lifetime (~ms) luminescence of Tb(III) complexes and time-gated luminescence microscopy. This allows pulsed excitation followed by a brief delay that eliminates nonspecific fluorescence before detection of Tb(III)-to-GFP emission. The challenges of intracellular delivery, selective protein labeling, and time-gated imaging of lanthanide luminescence are presented, and recent efforts to investigate the cellular uptake of lanthanide probes are reviewed. Data is presented showing that conjugation to arginine-rich, cell penetrating peptides (CPPs) can be used as a general strategy for cellular delivery of membrane impermeable lanthanide complexes. A heterodimer of a luminescent Tb(III) complex, Lumi4, linked to trimethoprim (TMP) and conjugated to nonaarginine via a reducible disulfide linker rapidly (~10 min) translocates into the cytoplasm of Maden Darby canine kidney cells from culture medium. With this reagent, the intracellular interaction between GFP fused to FK506 binding protein 12 (GFP-FKBP12) and the rapamycin binding domain of mTOR fused to Escherichia coli dihydrofolate reductase (FRB-eDHFR) was imaged at high signal-to-noise ratio with fast (1–3 s) image acquisition using a time-gated luminescence microscope. The data reviewed and presented here show that lanthanide biosensors enable fast, sensitive and technically simple imaging of protein-protein interactions in live cells.