Inner filter effect (IFE) was previously considered as an error in fluorescence measurement. In recent years, it has been developed as an important non-irradiation energy conversion model of spectroscopic technique and found wide applications in the fields of chemical sensing and biosensing. In comparison with traditional techniques based on forster resonance energy transfer (FRET), the IFE-based fluorescent approach is more flexible and straightforward without the link of absorber with fluorescer. The present review for the first time introduces the state of the art in the progress of the IFE-based fluorescent sensing systems, including sensing strategy, essential conditions, materials option, and their applications for the detection of various target analytes, e.g., ionic species, small molecules, and macromolecules. In addition, the benefits and limitations of the IFE-based fluorescent sensing systems are also critically discussed and highlighted.