Gas sensors based on semiconducting metal oxide nanostructures are expected to exhibit better sensing properties like sensitivity and selectivity, than gas sensors based on other materials. Majority of the semiconducting materials possess n-type conduction and it is due to the presence of bulk oxygen vacancies. The sensitivity of the semiconducting material depends on the surface reaction between the chemisorbed oxygen and the reducing gases. Optimized indium zinc oxide thin films deposited at room temperature by electron beam evaporation technique were engaged as sensing elements for the detection of ethanol in this present study.