In the present study, a new hydrogen (H2) gas sensor that is CeO2/Y2O3 nanocomposites were effectively synthesized by using hydrothermal technique. XRD, FE-SEM, AFM were performed for knowing the crystal structure and morphology of as prepared nanocomposite. Here, XRD pattern of CeO2/Y2O3 shows the Cubic structure of space group Fm3m having density 6.74gmcm-3, volume 157.81×106pm3, crystallite size 18.66nm and lattice strain is 0.0041 after that many more structural parameters were also calculated by using Rietveld refinement. Furthermore, FE-SEM and AFM studies show the granular structure and surface roughness. Additionally, Hydrogen sensing was performed at temperature of 100-125˚C with hydrogen concentration of 20-100 ppm and obtained 3.76 sensor response with relatively response and recovery time of 55.9 and 75.23 sec respectively. The studied sensor device also exhibits the advantages of a simple structure, easy fabrication process, and relatively low- cost hydrogen detection sensor.