The alarming rise of indoor pollution and the need to combat the associated negative effects have promoted increasing attention in modernizing the chemical sensing technologies by newly designed materials with rich and tunable functionalities at atomic or molecular levels. With the appealing physical, chemical, optical, and electronic properties for various potential applications, the state-of-art gas-sensing nanomaterials and their future perspectives are well-documented and summarized in this paper. Specifically, the key performance attributes are addressed in detail such as the sensitivity, selectivity, reversibility, operating temperature, response time, and detection limit. As such, this review provides both critical insights in exploring and understanding various gas sensing nanomaterials and points out limitations and opportunities for further developments, such as morphology control, doping and surface alteration, atomic-scale characterization, and applications in different fields. Finally, the challenges and outlooks are discussed on the basis of the current developments.