The specificity of hybridization of complementary sequences in DNA is the basic strategy for identifying target genes. For this, stem loop oligonucleotide probes have been developed in order to enhance the specificity and selectivity to the target DNA. Among stem loop oligonucleotides, molecular beacons are the recent probes used for biomolecular recognition reactions. Molecular beacon-based assays are fast, simple, inexpensive, and enable real-time monitoring of nucleic acid reactions both, in vivo and in vitro. This review has been designed to provide a better understanding of the different aspects of molecular beacons, e.g. structure, designing and applications in real-time monitoring of nucleic acid amplification, detection of pathogens, nucleic acid-protein interaction, genetic analysis and array technology.