A crucial parameter influencing the formation of pollutant gases in internal combustion engines is the air-to-fuel ratio (AFR). During transients on gasoline and diesel engines, significant AFR excursions from target values can occur, but cycle-by-cycle AFR resolution, which is helpful in understanding the origin of deviations, is difficult to achieve with existing hardware. This is because current electrochemical devices such as universal exhaust gas oxygen (UEGO) sensors have a time constant of 50–100 ms, depending on the engine running conditions. This paper describes the development of a fast reacting device based on a wide band lambda sensor which has a maximum time constant of ~20 ms and enables cyclic AFR measurements for engine speeds of up to ~4000 rpm. The design incorporates a controlled sensor environment which results in insensitivity to sample temperature and pressure. In order to guide the development process, a computational model was developed to predict the effect of pressure and temperature on the diffusion mechanism. Investigations regarding the sensor output and response were carried out, and sensitivities to temperature and pressure are examined. Finally, engine measurements are presented.