This review paper introduces various types of gas sensors operating at high temperatures and their mechanisms, which can provide solutions to gas sensor selection for harsh environment application. Most of the gas sensors are found to be functioning at moderate operating temperatures (<400°C) and only a few reports are available, which highlight gas-sensing performance above 400°C. Therefore, the selection of a more reliable high-temperature gas sensor is necessary and advantageous for applications in areas such as agricultural waste processes (such as pyrolysis processes), military facilities, nuclear power plants, and automobile industries. In this paper, three major parts have been conducted to address the importance of high-temperature gas sensors and provide strategical solution for gas sensor selection. First, we have highlighted the application scenario and the sensing mechanism of various gas sensors operating at high temperature. Additionally, factors that affect sensing performance at moderate operating temperature have been investigated. Secondly, we have discussed the effect of material compositions, morphology of the nanostructures, and the use of dopants on sensing performance of high temperature gas sensors. Meanwhile, the catalytic nature of the sensing layer and temperature effect on chemisorption in oxide-based sensors have been discussed meticulously. Lastly, future challenges including factors affecting various sensor performance, selection, and preparation of sensing materials operating at higher temperatures are explored systematically.