This article introduces sensing of nitrogen dioxide (NO <sub xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">2</sub> ) gas using horizontally aligned single walled carbon nanotubes (SWCNTs) in between gold interdigitated electrodes (IDEs). The fabrication process employed microelectromechanical system (MEMS), photolithography, thin film metallization, and dielectrophoresis (DEP) methods. Gold IDEs were fabricated using photolithography and thin film metallization techniques onto Si/SiO <sub xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">2</sub> substrate, and then, SWCNTs were horizontally aligned in between IDE using DEP. The fabricated sensor was characterized for sensing of NO <sub xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">2</sub> gas in the range 1 to 5 ppm. The cardinal sensing principle involves the reduction of NO <sub xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">2</sub> molecules on interaction with horizontally aligned SWCNTs. This reduction of NO <sub xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">2</sub> molecules is attributed to intratube and intertube electron modulation and charge transfer mechanisms on SWCNTs surface, which is manifested in terms of change in resistance of the SWCNTs. Therefore, change in resistance of SWCNTs on changing the concentration of NO <sub xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">2</sub> gas was considered as the detection signal. The sensitivity of the present NO <sub xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">2</sub> gas sensor is found to be ~70%, which is better than the reported ones. The additional advantages of present study are that it is highly efficient, portable, compact, and cost effective technique for sensing of NO <sub xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">2</sub> gas, which possesses potential applications in environmental monitoring of NO <sub xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">2</sub> gas and space flight demonstration.