The need for sensors that measure the acetone content of exhaled breath for diabetes severity has recently increased. Clinical researchers have reported less than 0.8 ppm acetone concentration in the exhaled breath of an average individual, while that for a diabetic patient is higher than 1.8 ppm. This work reports the development of two sets of evanescent wave-based fiber optic sensor coated with SnO2 thin film and bilayer of SnO2/MoS2 to detect different acetone concentrations (0–250 ppm). In each set, we have studied the effect of clad thickness (chemical etch time 5min, 10 min, 15 min, 25 min, 40 min, and complete clad removal) to optimize the clad thickness for a better response. In Set 1, SnO2 thin film was used as the sensing layer, while in Set 2 a bilayer of SnO2 thin film/ MoS2 was used. Enhanced sensor response of ~23.5% is observed in the Set 2 probe with a response and recovery time of ~14 s/~17 s. A SnO2/MoS2-coated sensor prototype is developed using LEDs of different wavelength and intensity detector; its potential to detect different concentrations of acetone is tested. X-ray Diffraction (XRD), Scanning Electron Microscope (SEM), Ultraviolet (UV) Spectroscopy, and Ellipsometry were used to study the structural, morphological and optical properties of the sensing layers. The present study indicates that the SnO2/MoS2-coated sensor has the potential to create a handheld sensor system for monitoring diabetes.