We designed a 3D geometrical model of a metal-oxide gas sensor and its custom packaging and used it in finite element modeling (FEM) analysis for obtaining temperature and heat flux distribution. The 3D computer simulation, performed with GetDP software (version 3.5.0, 13 May 2022), accurately predicted the temperature distribution variation across the entire assembly. Knowing the temperature variation and the location of the hot spots allowed us to select the best electrical interconnect method and to choose the optimal materials combination and optimal geometry. The thermal modeling also confirmed the need to use a low thermal conductivity material to insulate the MOX sensor since the latter is heated to its operational temperature of 250 °C. For that purpose, we used the in-house formulated xerogel-epoxy composite of thermal conductivity of 0.108 W m-1 K-1, which is at least 30% less compared to the best-in-class among commercially available materials. Based on the 3D FEM outputs, we designed, assembled, and characterized a fully functional packaged MOX gas sensor in several configurations. We measured the temperature distribution on all parts of the MOX gas sensor assembly using a thermal imaging infrared (IR) microscope. The results of 3D FEM are in good agreement with the temperature distribution obtained by the non-contact IR thermal characterization.