This article will briefly overview our efforts in the engineering of water soluble variants of a G-protein coupled receptor (GPCR) and its novel applications to develop biosensors using such water soluble variants of GPCR. While the technologies using water soluble GPCR are still under development, they offer new tools and strategies to study the function of GPCR, explore potential new compounds for potential clinical usage, and monitor endogenous peptides in various physiological and pathological conditions.