The use of ultrasonic energy for chemical synthesis has recently become an interesting and growing area of research. Using this form of energy, we have synthesized nanoparticles of SnO2 (8–30 nm) at room temperature by a sonication assisted precipitation technique. In order to understand the effect of ultrasonic energy on particle size and their distribution, the precipitation time was varied during the preparation. A sonication time of 3 h was found to be optimum to produce SnO2 nanoparticles having size below 10 nm. We found that a gradual increase of the sonication time gradually decreases the particle size with interesting morphology and increased surface area. The butane sensing properties of the synthesized powders exhibited a direct influence of the sonication time on the sensing properties. A 3 h sonicated sample, exhibited a maximum response of around 98.88% towards 5000 ppm butane at 450 °C with a fast recovery time.