Iodine in natural and treated waters exists mainly as iodide, iodate, and molecular iodine (I2). I2 is a highly volatile and reactive species impacting biological and chemical systems. Iodine, a vital micronutrient, is essential for human and animal growth and metabolism. It also plays a crucial role in synthesising artificial adrenaline within the metabolic processes of humans and animals. It is also widely used as an antiseptic, disinfectant, and for emergency water disinfection. Moreover, iodine deficiency can result in various diseases, especially hypothyroidism and goitre. Given its critical functions, it is imperative to have a straightforward, dependable, and efficient method for monitoring iodine levels. This study introduces a simple and innovative I2 detection system based on its reactivity, toxicity, and role as an indicator of oxidative conditions in water. It operates in terms of based on optical and electrochemical signal changes, utilising the anti-aggregation mechanism of gold nanoparticles (AuNPs) and 6-mercaptohexanol (MHA) for sensitive and selective detection under mild conditions. I2 determination is achieved by observing the colour change in AuNPs, which is influenced by competitive interactions between MHA, I2, and AuNPs. The optical detection system, with its low detection limit (LOD=260 nM), is based on the straightforward observation of colour changes. On the other hand, the electrochemical detection method utilises changing redox peaks observed in anodic region, providing selective and sensitive I2 detection (LOD=100 nM). The probe effectively detects the presence of I2 in real water samples as a practical application. Moreover, the proposed method revolutionises I2 detection by incorporating a smartphone for signal reading, eliminating the need for specialised equipment and significantly reducing the detection cost. This cost-effective approach carries the potential to expedite on-site and naked-eye I2 detection, opening up new possibilities for research and application.