SummaryOxygen (O2) homeostasis is important for all aerobic animals. However, the manner by which O2 sensing and homeostasis contribute to lifespan regulation is poorly understood. Here, we use the nematode Caenorhabditis elegans to address this question. We demonstrate that a loss‐of‐function mutation in the neuropeptide receptor gene npr‐1 and a deletion mutation in the atypical soluble guanylate cyclase gcy‐35 O2 sensor interact synergistically to extend worm lifespan. The function of npr‐1 and gcy‐35 in the O2‐sensing neurons AQR, PQR, and URX shortens the lifespan of the worm. By contrast, the activity of the atypical soluble guanylate cyclase O2 sensor gcy‐33 in these neurons is crucial for lifespan extension. In addition to AQR, PQR, and URX, we show that the O2‐sensing neuron BAG and the interneuron RIA are also important for the lifespan lengthening. Neuropeptide processing by the proprotein convertase EGL‐3 is essential for lifespan extension, suggesting that the synergistic effect of joint loss of function of gcy‐35 and npr‐1 is mediated through neuropeptide signal transduction. The extended lifespan is regulated by hypoxia and insulin signaling pathways, mediated by the transcription factors HIF‐1 and DAF‐16. Moreover, reactive oxygen species (ROS) appear to play an important function in lifespan lengthening. As HIF‐1 and DAF‐16 activities are modulated by ROS, we speculate that joint loss of function of gcy‐35 and npr‐1 extends lifespan through ROS signaling.