Pd-0-loaded SnO2 nanofibers have been successfully synthesized with different loaded levels via electrospinning process, sintering technology, and in situ reduction. This simple strategy could be expected to extend for the fabrication of similar metal-oxide loaded nanofibers using different precursors. The morphological and structural characteristics of the resultant product were investigated by scanning electron microscopy (SEM), transmission electron microscopy (TEM), X-ray diffraction (XRD), and X-ray photoelectron spectra (XPS). To demonstrate the usage of such Pd-0-loaded SnO2 nanomaterial, a chemical gas sensor has been fabricated and investigated for H-2 detection. The sensing performances versus Pd-0-loaded levels have been investigated in detail. An ultralow limit of detection (20 ppb), high response, fast response and recovery, and selectivity have been obtained on the basis of the sensors operating at room temperature. The combination of SnO2 crystal structure and catalytic activity of Pd-0-loaded gives a very attractive sensing behavior for applications as real-time monitoring gas sensors.