Nitrogen Dioxide (NO2) gas monitoring has become increasingly important to ensure the safety of human lives and the environment. The present study investigates the potential of low-cost delafossite-structured AgFeO2 nanoparticles to detect NO2 gas at low temperature. Highly porous, grain-like AgFeO2 nanoparticles were prepared by simple co-precipitation method and characterized using XRD, FESEM-EDS, TEM and BET analysis.AgFeO2 nanograins synthesized by conventional method, demonstrated gas-sensing performance with respect to sensitivity (1.89%), short response (51s) and, selectivity at low temperature of 50 oC, towards 8 ppm NO2 gas.