Detection and identification of toxic environmental gases have assumed paramount importance precisely in the defense, industrial and civilian security sector. Numerous methods have been developed for the sensing of toxic gases in the environment ever since surface acoustic wave (SAW) technology came into existence. Such SAW sensors called electronic nose (E-Nose) sensor use the frequency response of a delay line/resonator. SAW device is focused and given importance. The selective coating between input and output interdigital transducers (IDTs) in the SAW device is responsible for corresponding changes in operating frequency of the device for a specific gas/vapour absorbed from the environment. A suitable combination of well-designed SAW delay lines with selective coatings not only help to improve sensor sensitivity and selectivity but also leads to the minimization of false frequency alarms in the E-Nose sensor. This article presents a comprehensive review of design, development, simulation and modelling of a SAW sensor for potential sensing of toxic environmental gases.