To realize high response and selectivity gas sensor in detecting dissolved gases in transformer oil, in this study, the adsorption of four kinds of gases (H2, CO, C2H2 and CH4) on Pd-graphyne as well as the gas sensing properties evaluation were investigated. The energetically favorable structure of Pd doped γ-Graphyne was first studied, including the comparison of different adsorption sites and discussion of electronic properties. Then, the adsorption of these four molecules on Pd-graphyne was explored. The adsorption structure, adsorption energy, electron transfer and electron distribution, the band structure and density of states were calculated and analyzed. The results show that the Pd atom prefers to be adsorbed on the middle of three C≡C bonds and the band gap is smaller. The CO adsorption exhibits the largest adsorption energy and electron transfer and brings obvious change to the structure and electron properties to Pd-graphyne. Because of the conductance decrease after adsorption CO and acceptable recovery time at high temperature, the Pd-graphyne can be promising gas sensing materials to detect CO with high selectivity. This work offers theoretical support for the design of nanomaterials based gas sensor using novel structure for industrial application.