Sensors are widely used owing to their advantages including excellent sensing performance, user-friendliness, portability, rapid response, high sensitivity, and specificity. Sensor technologies have been expanded rapidly in recent years to offer many applications in medicine, pharmaceuticals, the environment, food safety, and national security. Various nanomaterial-based sensors have been developed for their exciting features, such as a powerful absorption band in the visible region, excellent electrical conductivity, and good mechanical properties. Natural and synthetic coumarin derivatives are attracting attention in the development of functional polymers and polymeric networks for their unique biological, optical, and photochemical properties. They are the most abundant organic molecules in medicine because of their biological and pharmacological impacts. Furthermore, coumarin derivatives can modulate signaling pathways that affect various cellular processes. This review covers the discovery of coumarins and their derivatives, the integration of nanomaterial-based sensors, and recent advances in nanomaterial-based sensing for coumarins. This review also explains how sensors work, their types, their pros and cons, and sensor studies for coumarin detection in recent years.