Sensing devices for rapid analytics are important societal requirements, with wide applications in environmental diagnostics, food testing, and disease screening. Nanomaterials present excellent opportunities in sensing applications owing to their superior structural strength, and their electronic, magnetic, and optoelectronic properties. Among the various mechanisms of gas sensing, including chemiresistive sensors, electrochemical sensors, and acoustic sensors, another promising area in this field involves plasmonic sensors. The advantage of nanomaterial-plasmonic sensors lies in the vast opportunities for tuning the sensor performance by optimizing the nanomaterial structure, thereby producing highly selective and sensitive sensors. Recently, several novel plasmonic sensors have been reported, with various configurations such as nanoarray resonator-, ring resonator-, and fiber-based plasmonic sensors. Going beyond noble metals, some promising nanomaterials for developing plasmonic gas sensor devices include two-dimensional materials, viz. graphene, transition metal dichalcogenides, black phosphorus, blue phosphorus, and MXenes. Their properties can be tuned by creating hybrid structures with layers of nanomaterials and metals, and the introduction of dopants or defects. Such strategies can be employed to improve the device performance in terms of its dynamic range, selectivity, and stability of the response signal. In this review, we have presented the fundamental properties of plasmons that facilitate its application in sensor devices, the mechanism of sensing, and have reviewed recent literature on nanomaterial-based plasmonic gas sensors. This review briefly describes the status quo of the field and future prospects.