Developing efficient metal-organic framework (MOF) based nanocomposite sensor with superior performance for fast, sensitive and selective detection of ammonia (NH3) is essential for environmental protection and human health. This work reports synthesis of Pd-Co@IRMOF-1 nanocomposite based gas sensor for the detection/sensing of ammonia (NH3) at room temperature. The successful synthesis of Pd-Co@IRMOF-1 nanocomposite was confirmed with spectroscopic and structural characterizations. Unlike earlier realizations, the fabricated Pd-Co@IRMOF-1 nanocomposite based sensor showed notable detection sensitivity for NH3 at concentrations down to 1ppm level. Distinctly, the MOF based nanocomposite sensor exhibited the excellent sensitivity and long-time stability to NH3. In contrast to other reported MOFs, Pd-Co@IRMOF-1 showed remarkable selectivity towards ammonia in comparison to formaldehyde, ethanol, acetone, Isopropyl alcohol and benzene. The Pd-Co@IRMOF-1 based sensor exhibited excellent performance for sensing of ammonia which can be helpful for future in wearable sensor device applications.