Gnorman, who was a favourite among customers at the Anarchy hair salon in Priory Walk, was snatched last week - and his disappearance has left youngsters heartbroken.
Owner Tracy Grayson is now offering a reward for the return of the "iconic" and "landmark" garden decoration which has stood guard outside the salon for the past year.
She said: "He has become a bit of a celebrity and a bit of an icon in Doncaster and the kids who come to the shop are devastated that he has gone.
"We just want him back safely to where he belongs. He is famous and everyone knows him."
Gnorman, who sports a red hat, white beard, blue coat, green belt and black boots, was taken from steps outside the shop at around 10.30am last Tuesday.
She reported the incident to police who later arrested a man in connection with the incident - but officers told her there was no sight of the gnome, which she believes has been sold on.
Added Tracy, who has run the salon for the past eight years: "He has become a bit of a celebrity. The kids like having their photo taken with him and we decorated him up at Christmas.
"We also leave bags of sweets near him for the children too - they are gutted that he has gone. They hug him and everything - everyone knows him."
Tracy has said that she will offer a free hair treatment or products to the person who returns Gnorman.
She said: "There will be no questions asked. Someone might innocently have him in their garden and might be embarrassed."
Anyone with information can contact Anarchy on (01302) 320839.