The application of functional nanomaterials (FNMs) in sensing and analytical chemistry has opened a new era of conceptual design for next-generation tracing tools. They have proven their worth through high stability, biocompatibility along with rapid response towards recognition events even at ultra-weak biological signals. This has promoted the field of life science and biomedicine in terms of therapeutics and theranostics. However, studies performed to discover the use of FNMs in wearable sensors are limited. As the market for wearable sensors expands, there is a continuous demand for flexible chips to be integrated with skin or clothes. The FNMs, such as silicon nanolayer or carbon-based nanomaterials in this direction possess lower flexural rigidity than bulk counterparts to demonstrate multi-functionality. This perspective review targets the significant advances of FNMs in wearable sensors. Here, we discuss state-of-the-art FNM based wearable chips. With the initial introduction of FNMs and their unique properties, we elaborate their importance in an integrated system of wearable sensors. The detailed discussion along with suitable examples is also presented in the second section of the review and at last, we explain the need for more extensive research on FNMs to further their applications in the wearable sensing industry.