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Recent years have witnessed an exponential increase in the research on gold nanoparticles (AuNPs)-based colorimetric sensors to revolutionize point-of-use sensing devices. Hence, this review is compiled focused on current progress in the design and performance parameters of AuNPs-based sensors. The review begins with the characteristics of AuNPs, followed by a brief explanation of synthesis and functionalization methods. Then, the mechanisms of AuNPs-based sensors are comprehensively explained in two broad categories based on the surface plasmon resonance (SPR) characteristics of AuNPs and their peroxidase-like catalytic properties (nanozyme). SPR-based colorimetric sensors further categorize into aggregation, anti-aggregation, etching, growth-mediated, and accumulation-based methods depending on their sensing mechanisms. On the other hand, peroxidase activity-based colorimetric sensors are divided into two methods based on the expression or inhibition of peroxidase-like activity. Next, the analytes in environmental and food samples are classified as inorganic, organic, and biological pollutants, and recent progress in detection of these analytes are reviewed in detail. Finally, conclusions are provided, and future directions are highlighted. Improving the sensitivity, reproducibility, multiplexing capabilities, and cost-effectiveness for colorimetric detection of various analytes in environment and food matrices will have significant impact on fast testing of hazardous substances, hence reducing the pollution load in environment as well as rendering food contamination to ensure food safety.