A gas sensor diagnostic method (or apparatus) is arranged to periodically obtain sensor output values of a gas sensor such as an oxygen sensor for an internal combustion engine, and to determine local extreme values from the sensor output values obtained during a period of interruption of fuel supply to the engine. Moreover, the local extreme values are compared with a first predetermined threshold level. When the number of the local extreme values reaches a predetermined first number, a diagnosis is performed to determine whether the gas sensor is in an improper condition or not, in accordance with results of the comparison of the local extreme values with the first threshold level.