The potential for leakage of liquid electrolytes from magnesium (Mg) batteries represents a large hurdle to future application. Despite this, there are no efficient sensing technologies to detect the leakage of liquid electrolytes. Here, we developed a sensor using laccaic acid (L-AIEgen), a naturally occurring aggregation-induced emission luminogen (AIEgens) isolated from the beetle Laccifer lacca. L-AIEgen showed good selectivity and sensitivity for Mg2+, a universal component of electrolytes in Mg batteries. Using L-AIEgen, we then produced a smart film (L-AIE-F) that was able to sense leakage of electrolytes from Mg batteries. L-AIE-F showed a strong “turn-on” AIE-active fluorescence at the leakage point of electrolyte from model Mg batteries. To the best of our knowledge, this is the first time that AIE technology has been used to sense the leakage of electrolytes.