Trace gas sensors have received extensive attention and have become particularly attractive for applications in toxic gas detection, medical diagnostics, pollution monitoring, industrial emission measurement, and so on. However, it is still a critical challenge for gas sensors to simultaneously achieve high sensitivity and low detection limits while performing well in stability. Here, a space-domain active fiber cavity ring-down (FCRD) gas sensing technique was proposed to develop a high-performance gas sensor. Taking advantage of the active FCRD sensing technique and frequency-shifted interferometry, the proposed gas sensor exhibited a high sensitivity of 1.122km−1/%. Importantly, introducing a bidirectional EDFA into the fiber cavity further enhances the light–gas interaction, resulting in a low detection limit of 55 ppm, which is much lower than that of most reported gas sensors. Moreover, a good stability of 0.58% can be achieved due to the combined effect of the proposed technology using differential detection to eliminate DC noise, as well as common-path interference to eliminate common-mode noise and the use of continuous light to stabilize the optical power in the fiber cavity for suppressing the gain fluctuations of EDFA.