We explored how to integrate advanced sensor technology and computer processing in wearable devices for healthcare in terms of applications, innovations, and challenges. The technology for wearable devices has rapidly evolved from simple fitness trackers to sophisticated medical devices. Wearable devices employ the real-time monitoring and personalized feedback of health-related signals. Through a literature review and case study, the effectiveness of managing chronic conditions and supporting telemedicine of wearable devices was assessed. The results showed that data accuracy, privacy, and accessibility are important in using wearable devices. At the same time, sensor data accuracy, robust data encryption protocols, and user interfaces are also critical in integrating sensor technology and computer processing. The integration of artificial intelligence and blockchain technologies is also required for wearable devices to provide proactive, personalized, and cost-effective solutions for healthcare.