After revolutionizing the field of electro-optic displays, liquid crystals (LCs) are emerging as functional soft materials with wide-ranging biomedical implications. Integrating smart sensor designs with label-free imaging presents exciting opportunities in diagnostics. In this Perspective, we present an elegant collage of the key findings that demonstrate the utility of LC biosensors in diagnosing a disease or infection in clinical samples, cellular microenvironments, or bodily fluids. We emphasize the currently prevalent diagnostic techniques and the advances made using LCs in achieving greater sensitivity, a simplified strategy, multiplexed detection, and so on. We collate the landmark contributions in translational research in LC-based diagnostics. We believe that developing LC-based biosensors presents a new therapeutic window in point-of-care diagnostics.