Zinc Oxide (ZnO) nanoparticles have been synthesized adopting sol-gel process. The structure of the obtained product is confirmed by the powder XRD analysis. The influence of size effect on the optical properties of ZnO nanoparticles is examined using optical absorption spectrum. The morphology, size and structure of the as prepared ZnO nanoparticles are investigated using SEM and TEM analyses. In addition, LPG sensing properties is also investigated.