Commercial ferrites with high densities are mostly used in the electromagnetic devices, which require high temperature synthesis. In this article the gas-sensing characteristics of pure and Pd-doped MgFe 2O 4 powder has been discussed. The synthesis has been carried out by using a simple molten salt method. This method facilitates rapid synthesis at comparatively lower temperature enabling formation of nanostructures, suitable for the gas-sensing application. Various physicochemical techniques have been used for the characterization of samples. X-ray diffraction analysis confirmed the single-phase formation of pure and Pd-doped MgFe 2O 4 having crystallite size 15–20 nm. Pure MgFe 2O 4 showed highest responses towards liquid petroleum gas (LPG) at 350 °C while, on doping with Pd the highest response shifted towards lower operating temperature of ∼200 °C. Pure MgFe 2O 4 exhibited some response towards 200 ppm of LPG which markedly increased on doping of palladium (Pd). The probable mechanism is proposed to explain the selective response towards LPG.