The widespread consumption of hydrogen in commercial and industrial applications has resulted in the development of different hydrogen gas sensors. However, their practical application is restricted due to their non-cost efficiency, low sensitivity, poor selectivity and high temperature sensing properties. Thus, the development of a sensor capable of overcoming the aforementioned limitations is critical for commercial deployment. As a result, a NiSe2-rGO composite-based H2 gas sensor has been prepared for the first time using a simple hydrothermal technique. The developed material has been systematically characterized for its morphological properties and thoroughly investigated for H2 gas sensing applications. The findings show that the developed NiSe2-rGO composite exhibited enhanced H2 gas sensing properties, besides possessing appreciable selectivity, repeatability as well as long-term stability. Furthermore, the results demonstrate a stable sensor response of 254% within 43 s and 13 s of response and recovery time respectively at a hydrogen concentration of 500 ppm which is 8 and 500 times higher than that of its individual counterparts (NiSe2 and rGO) over a wide relative humidity range, indicating the material's potential for application in industrial environments. Thus, this work paves the way for the development of stable, effective, fast-responding, and selective hydrogen gas sensors that are functional at room temperature.