The detection of toxic gases has long been a priority in industrial manufacturing, environmental monitoring, medical diagnosis, and national defense. The importance of gas sensing is not only of high benefit to such industries but also to the daily lives of people. Graphene-based gas sensors have elicited a lot of interest recently, due to the excellent physical properties of graphene and its derivatives, such as graphene oxide (GO) and reduced graphene oxide (rGO). Graphene oxide and rGO have been shown to offer large surface areas that extend their active sites for adsorbing gas molecules, thereby improving the sensitivity of the sensor. There are several literature reports on the promising functionalization of GO and rGO surfaces with metal oxide, for enhanced performance with regard to selectivity and sensitivity in gas sensing. These synthetic and functionalization methods provide the ideal combination/s required for enhanced gas sensors. In this review, the functionalization of graphene, synthesis of heterostructured nanohybrids, and the assessment of their collaborative performance towards gas-sensing applications are discussed.