Recognition of dichotomous emotional states such as happy and sad play important roles in many aspects of human life. Existing literature has recorded diverse attempts in extracting physiological and non-physiological traits to record these emotional states. Selection of the right instrumental approach for measuring these traits plays a critical role in emotion recognition. Moreover, various stimuli have been used to induce emotions. Therefore, there is a current need to perform a comprehensive overview of instrumental approaches and their outcomes for the new generation of researchers. In this direction, this study surveys the instrumental approaches in discriminating happy and sad emotional states that are elicited using audio-visual stimuli. A comprehensive literature review is performed using PubMed, Scopus, and ACM digital library repositories. The reviewed articles are classified with respect to the i) stimulation modality, ii) acquisition protocol, iii) instrumentation approaches, iv) feature extraction, and v) classification methods. In total, 39 research articles were published on the selected topic of instrumental approaches in differentiating dichotomous emotional states using audio-visual stimuli between January 2011 and April 2021. The majority of the papers used physiological traits, namely electrocardiogram, electrodermal activity, heart rate variability, photoplethysmogram, and electroencephalogram based instrumental approaches for recognizing the emotional states. The results show that only a few articles have focused on audio-visual stimuli for the elicitation of happy and sad emotional states. This review is expected to seed research in the areas of standardization of protocols, enhancing the diagnostic relevance of these instruments, and extraction of more reliable biomarkers. © 2013 IEEE.