<p>Milk is one of the most consumed food worldwide, with global production exceeding 700 million tonnes annually. However, its safety is frequently threatened by aflatoxin M1, a toxic metabolite that enters milk primarily through contaminated feed. The occurrence of aflatoxin M1 varies across regions, influenced by climatic conditions, agricultural practices, and storage facilities. Conventional detection methods such as chromatography and immunoassays, though widely used, are often limited by low selectivity, laborious protocols, and long analysis times. In recent years, fluorescence-based techniques and sensor technologies have emerged as promising alternatives due to their rapid response, portability, and user-friendly operation. This review critically examines extraction and detection strategies for aflatoxin M1 in milk, highlighting traditional approaches as well as recent advances in biosensors and nanomaterial-assisted techniques. The working principles, advantages, and limitations of these methods are discussed alongside the regulatory frameworks that establish maximum permissible limits at national and international levels. Factors influencing aflatoxin occurrence in milk are also outlined. The review concludes with current challenges and future perspectives, emphasizing the need for sensitive, cost-effective, and field-deployable detection tools to strengthen food safety and consumer protection.</p>