Networks of pristine high quality single walled carbon nanotubes (SWNTs), the SWNTs after Ar-plasma treatment (from 2 to 12 min) and carbon nanobuds (CNBs) have been tested for ethanol vapor sensing. It was found that the pristine high quality SWNTs do not exhibit any ethanol sensitivity, while the introduction of defects in the tubes results in the appearance of the ethanol sensitivity. The CNB network showed ethanol sensitivity without plasma treatment. Both CNB and low defect (after 3 min treatment) SWNT networks exhibit significant drift in the resistance baseline, while heavily plasma-treated (9 min) SWNTs exhibited high ethanol vapor sensitivity without the baseline change. The mechanisms of the ethanol sensitivity and stability after the plasma irradiation are attributed to the formation of sensitive dangling bonds in the SWNTs and formation of defect channels facilitating access of the ethanol vapor to all parts of the bundled nanotubes.