A polyaniline/In2O3 nanofibre composite based layered surface acoustic wave (SAW) sensor has been developed and investigated for different gases. Chemical oxidative polymerization of aniline in the presence of finely divided In2O3 was employed to synthesize a polyaniline nanofibre/In2O3 nanoparticle composite. The nanocomposite was deposited onto a layered ZnO/64° YX LiNbO3 SAW transducer. The novel sensor was exposed to H2, NO2 and CO gases. Fast response and recovery times with good repeatability were observed at room temperature.