Surface plasmon resonance (SPR) allows for real-time, label-free optical detection of many chemical and biological substances. Having emerged in the last two decades, it is a widely used technique due to its non-invasive nature, allowing for the ultra-sensitive detection of a number of analytes. This review article discusses the principles, providing examples and illustrating the utility of SPR within the frame of plasmonic nanobiosensing, while making comparisons with its successor, namely localized surface plasmon resonance (LSPR). In particular LSPR utilizes both metal nanoparticle arrays and single nanoparticles, as compared to a continuous film of gold as used in traditional SPR. LSPR, utilizes metal nanoparticle arrays or single nanoparticles that have smaller sizes than the wavelength of the incident light, measuring small changes in the wavelength of the absorbance position, rather than the angle as in SPR. We introduce LSPR nanobiosensing by describing the initial experiments performed, shift-enhancement methods, exploitation of the short electromagnetic field decay length, and single nanoparticle sensors are as pathways to further exploit the strengths of LSPR nanobiosensing. Coupling molecular identification to LSPR spectroscopy is also explored and thus examples from surface-enhanced Raman spectroscopy are provided. The unique characteristics of LSPR nanobiosensing are emphasized and the challenges using LSPR nanobiosensors for detection of biomolecules as a biomarker are discussed.