Recent advancements in wearable biosensors and bioelectronics have led to innovative designs for personalized health management devices, with biocompatible conducting nanocomposite hydrogels emerging as a promising building block for soft electronics engineering. In this review, we provide a comprehensive framework for advancing biosensors using these engineered nanocomposite hydrogels, highlighting their unique properties such as high electrical conductivity, flexibility, self-healing, biocompatibility, biodegradability, and tunable architecture, broadening their biomedical applications. We summarize key properties of nanocomposite hydrogels for thermal, biomechanical, electrophysiological, and biochemical sensing applications on the human body, recent progress in nanocomposite hydrogel design and synthesis, and the latest technologies in developing flexible and wearable devices. This review covers various sensor types, including strain, physiological, and electrochemical sensors, and explores their potential applications in personalized healthcare, from daily activity monitoring to versatile electronic skin applications. Furthermore, we highlight the blueprints of design, working procedures, performance, detection limits, and sensitivity of these soft devices. Finally, we address challenges, prospects, and future outlook for advanced nanocomposite hydrogels in wearable sensors, aiming to provide a comprehensive overview of their current state and future potential in healthcare applications.