A large fraction of population is suffering from waterborne diseases due to the contaminated drinking water. Both anthropogenic and natural sources are responsible for water contamination. Revolution in industrial and agriculture sectors along with a huge increase in human population has brought more amount of wastes like heavy metals, pesticides and antibiotics. These toxins are very harmful for human health, therefore, it is necessary to sense their presence in environment. Conventional strategies face various problems in detection and quantification of these pollutants such as expensive equipment and requirement of high maintenance with limited portability. Recently, nanostructured devices have been developed to detect environmental pollutants. Polymeric nanocomposites have been found robust, cost effective, highly efficient and accurate for sensing various environmental pollutants and this is due to their porous framework, multi-functionalities, redox properties, great conductivity, catalytic features, facile operation at room temperature and large surface area. Synergistic effects between polymeric matrix and nanomaterials are responsible for improved sensing features and environmental adaptability. This review focuses on the recent advancement in polymeric nanocomposites for sensing heavy metals, pesticides and antibiotics. The advantages, disadvantages, operating conditions and future perspectives of polymeric nanocomposites for sensing toxic pollutants have also been discussed.