A bifunctional, microporous Zn metal-organic framework, [Zn (NH BDC) (dpNDI)] (MOF1) (where, NH BDC=2-aminoterephthalic acid, dpNDI=N,N'-di(4-pyridyl)-1,4,5,8-naphthalenediimide) has been synthesized solvothermally. MOF1 shows an interesting two-fold interpenetrated, 3D pillar-layered framework structure composed of two types of 1D channels with dimensions of approximately 2.99×3.58 Å and 4.58×5.38 Å decorated with pendent -NH groups. Owing to the presence of a basic functionalized pore surface, MOF1 exhibits selective adsorption of CO with high value of heat of adsorption (Q =46.5 kJ mol ) which is further supported by theoretically calculated binding energy of 48.4 kJ mol . Interestingly, the value of Q observed for MOF1 is about 10 kJ mol higher than that of analogues MOF with the benzene-1,4-dicarboxylic acid (BDC) ligand, which establishes the critical role of the -NH group for CO capture. Moreover, MOF1 exhibits highly selective and sensitive sensing of the nitroaromatic compound (NAC), 2,4,6-trinitrophenol (TNP) over other competing NACs through a luminescence quenching mechanism. The observed selectivity for TNP over other nitrophenols has been correlated to stronger hydrogen bonding interaction of TNP with the basic -NH group of MOF1, which is revealed from DFT calculations. To the best of our knowledge, MOF1 is the first example of an interpenetrated Zn -MOF exhibiting selective adsorption of CO as well as efficient aqueous-phase sensing of TNP; investigated through combined experimental and theoretical studies.