In the search for new 2D materials beyond graphene with similar exemplary properties Stanene the new graphene relative was successfully synthesized and characterized in 2016 [14]. This new material which consists of atomically thin tin (Sn) atoms arranged in a hexagonal lattice has shown great promise in gas sensing applications in its pristine, doped and functionalized forms as evidenced by the recent research outputs following its discovery. Researchers have discovered that with its exotic properties it is highly efficient in the detection of the environmentally harmful gases like SO2, NO2, CO2, NH3 and can serve as a multifunctional gas sensor. In this focused and up-to-date review we aim to group the literature on first principles studies of stanene regards to its application for gas sensing and critically examine the success/failures of its multifunctional gas sensing properties as compared to graphene. We systematically present and discusses how structural deformations, defects and doping effect the gas sensing performance. Despite the impressive progress in the field of gas sensing with stanene shown by first principles calculations, many challenges in large scale synthesis, device fabrication and commercialization need to be addressed. The current review can help understand the current status and drawbacks of stanene and identify future directions in this field.