Here, we review the various methods for the preparation of vanadium dioxide ($VO_2$) films and nanowires, and their potential applications to the sensors such as gas sensor, strain sensor, and temperature sensor. $VO_2$ is an interesting material on account of its easily accessible and sharp Mott metal-insulator transition (MIT) at ${sim}68^{circ}C$ in the bulk. The MIT is also triggered by the electric field, stress, magnetic field etc. This paper involves exceptionally sensitive hydrogen sensors based on the catalytic process between hydrogen molecules and Pd nanoparticles on the $VO_2$ surface, and fast responsive sensors based on the self-heating effects which leads to the phase changes of the $VO_2$. These features will be seen in this paper and can enable strategies for the integration of a $VO_2$ material in advanced and complex functional units such as logic gates, memory, FETs for micro/nano-systems as well as the sensors.