In this Perspective we discuss recent trends in the development and applications of fluorescent proteins. We start by providing a historical and structural perspective of their spectroscopic and structural aspects and describe how these properties have made fluorescent proteins essential as 'smart labels' for biosensing and advanced fluorescence imaging. We show that the strong link between the spectroscopic properties and protein structure and properties is a necessary element in these developments and that this dependence makes the proteins excellent model systems for a variety of fields. We pay particular attention to emerging or future research opportunities and unsolved questions.