The chemical modification of multiwalled carbon nanotubes (MWCNTs) with a long chain mercapto acid is reported as a way to improve sensitivity and response time of gas sensors for detecting alcohols, acetone and toxic gases such as DMMP. We have developed sensors employing MWCNTs decorated with gold nanoparticles and modified with a 16-mercaptohexadecanoic acid (MHDA) monolayer. Morphological and compositional analysis by Transmission Electron Microscopy (TEM), Fourier Transform Infra-red Spectroscopy (FTIR) and X-ray photoelectron spectroscopy were performed to characterize the gold nanoparticles and to check the bonding of the thiol monolayer. The detection of aromatic and non-aromatic volatiles and DMMP vapors by MWCNT/Au and MWCNT/Au/MHDA shows that the presence of the self-assembled layer increases sensitivity and selectivity towards non-aromatics. Furthermore, it ameliorates response dynamics, and significantly reduces nitrogen dioxide and moisture cross-sensitivity.