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A 3-dimensional finite element (3D-FE) simulation approach of a SAW palladium thin film hydrogen sensor using ANSYS was investigated. The effect of the palladium thin film on the propagation characteristics of the SAW was studied in the absence and presence of hydrogen. The center frequency of the SAW device was 100 MHz. The simulation results were obtained in terms of displacements and voltage at the output IDT. In addition, the depth profile of the particle movement was obtained in both x and y directions. The 3D representation of the wave propagation on the substrate with the palladium thin film is also shown. The results were obtained using the theoretical perturbation approach in ANSYS. This paper helps in understanding the behaviour of the SAW gas sensor without having to perform the actual fabrication.