A system to detect the direction of the odor source using a sensor array has been designed. The system uses the relation between the responses of different sensors to determine the direction of source. A novel dynamic direction detection method based on a neural network is presented for detecting direction of ethanol odor source. Odor-Compass can be used in applications like hazardous gas leakage detection [1, 2], fire detection [3], rescue operations, automotive fuel qualification [4] etc. This paper presents design and development of an Odor compass which can indicate direction of the source of odor.