In this paper, pure and 1.5, 2.5 and 3.5 at.-% samarium oxide (Sm 2 O 3 ) doped tin oxide (SnO 2 ) nanorods were successfully synthesised with a facile and environment friendly hydrothermal process. All the as prepared nanostructures were carefully characterised by X-ray diffraction, field emission SEM, TEM, high resolution TEM and X-ray photoelectron spectroscopy respectively. Planar sensors were further fabricated with the as synthesised samples, and their sensing properties towards acetylene gas (C 2 H 2 ), an extremely significant fault characteristic gas dissolved in oil immersed power transformers, were systematically measured. Interestingly, the sensing properties of the fabricated SnO 2 nanorod based sensor to C 2 H 2 gas can be obviously enhanced by adding Sm 2 O 3 , and the sensor doped with 3.5 at.-%Sm 2 O 3 displays the most superior sensing characteristics, including operating temperature, sensitivity, response and recovery time, etc., as compared to other three cases. All results indicate that the synthesised Sm 2 O 3 doped SnO 2 sensing material might be a promising candidate for C 2 H 2 sensing and lay a solid foundation for exploring high performance chemical gas sensor to detect C 2 H 2 gas extracted from power transformer oil.