Conductive nanocomposites have emerged as significant smart engineered materials for realizing flexible electronics on diverse substrates in recent years. Conductive nanocomposites are comprised of conductive fillers mixed with polymeric elastomer (e.g. polydimethylsiloxane). The possibility to tune electrical as well as mechanical properties of nanocomposites makes them suitable for a wide spectrum of applications including sensors and electronics on non-planar and stretchable surfaces. A number of conductive nanofillers and manufacturing technologies have been developed to meet the diverse requirements of various applications. Considering the substantial contribution of conductive nanocomposites, it is opportune time to review the potentials of various nanofillers, their synthesis, processing methodologies and challenges associated to them. This paper reviews conductive nanocomposites, especially in context with their use in the development of electronic components and the sensors exploiting the piezoresistive behavior. The paper is structured around the nanocomposites related studies aiming to develop various building blocks of flexible electronic skin systems such as pressure, touch, strain and temperature sensors as well as stretchable interconnects. Besides this, the use of nanocomposites in other stimulating industrial and biomedical applications has also been explored briefly.