Equipment faults in power transformers can be detected by analyzing the dissolved gas in their internal insulation oil. In this study, the adsorption behavior and sensing properties of several characteristic dissolved gases (H 2 , CO, C 2 H 2 , and C 2 H 4 ) on pristine and late transition metal (TM) (Fe, Co, Ni, and Cu)-doped MoTe 2 were investigated using density functional theory (DFT) calculations. The adsorption energy, charge transfer (Q T ), charge density difference (CDD), band structure, density of states (DOS), work function, and occupation function were compared to understand the gas adsorption behavior and electronic properties. The results demonstrate that TM-MoTe 2 monolayers exhibit excellent sensing properties for H 2 , CO, C 2 H 2 , and C 2 H 4 compared to pristine MoTe 2 . Among the four TM atoms, Co doped MoTe 2 shows the highest increase in adsorption energy for H 2 , CO, C 2 H 2 , and C 2 H 4 . The DOS analysis reveals clear hybridization between the molecular orbitals of the adsorbed gas molecules and the TM atomic orbitals for CO, C 2 H 2 , and C 2 H 4 adsorption systems, indicating strong chemical interactions between these three gases and TM-MoTe 2 surfaces. Moreover, the Co-MoTe 2 surface exhibits superior sensitivity towards the adsorption of these four gas molecules. The introduction of TM doping shows a significant enhancement in adsorption selectivity, and TM-MoTe 2 demonstrate the most dominant selective adsorption of CO molecule. This study provides valuable theoretical insights for the design of a new gas sensor aimed at detecting dissolved gases.