In this paper, a review of the developments in the assembly and packaging of electronic sensors over the last three decades is given. This review is limited to mechanical-electrical microsystems (MEMS) and microelectronics-based sensors and their packaging at the device level. The evolution of the packaging cannot be regarded independently from the development of microelectronic sensors and MEMS. The focus of this review will be inertial sensors, which require stringent shielding of the functional structure from the environment. The concepts to achieve such hermeticity have evolved from the module level to the device level, and then to the wafer level. By these steps, it was possible to move from ceramic or metal packages to low-cost plastic packages. In the future, the hermetic thin-film capping of MEMS is expected. The injection-molded thermoplastic housings were further developed towards multifunctionality, comprising mechanical, fluidic, or optical features and also 3D wiring in so-called molded interconnect devices (MIDs). In parallel, the molding technology was adapted in order to provide chip-scale packaging with cavities for sensors.