This chapter is dedicated to bacteriophage-based biosensor designs used to specifically detect viruses, bacteria, and microorganisms related to diseases. The replication of a bacteriophage happens via either a lytic or lysogenic cycle, which is discussed in detail. Phage as a bioreceptor is the least explored among all the bioreceptors. This chapter also discusses various families of microorganisms, their shapes, morphology, and examples, and presents them schematically. A comparative study of bacteriophage-based and traditional bacterial detection methods is also presented in this chapter. It includes the details of reporter, stained, lytic, capturing, and receptor-binding protein-based probes. Genetically engineered bacteriophages and natural phages in the design of biosensors to detect the diagnosis of various diseases have been discussed in detail. Current advancements, difficulties, and future challenges that enable phage-based biosensors to be commercial successes are also discussed in detail. As this technology is still limited to the detection of microorganisms, the possibilities for other analytes have been discussed.