In this paper, the scientific progress in the field of thin film materials and their associated sensing technologies are described comprehensively to address the directions for future research and developments as per the need of modern-day technologies. To begin with, we briefly discussed the fundamental synthesis approaches for advanced thin films with an emphasis on the properties necessary for controlled fabrication (e.g., the elemental ratio and spatial arrangement). Subsequently, we explored the control, characterization, and optimization of hybrid porous thin films with respect to diverse sensing applications. The application of hybrid porous thin film materials has also been discussed in relation to the mechanisms used for biological, optical, electrical, acoustic, and other advanced sensing techniques (e.g., surface-enhanced Raman scattering (SERS)). Finally, conclusions are drawn to highlight the current status of thin film-based sensing technology along with its opportunities and challenges.