Polycrystalline thin films of silver oxide were synthesised by chemical bath deposition (CBD) technique. The particle size in the deposited films was found to decrease with increasing bath temperature while the porosity was found to increase with increasing temperature of deposition. The band gap in the film was found to increase with decreasing particle size. The sensitivity in the presence of alcohol was found to increase with working temperature before reaching maximum at 250°C. A maximum sensitivity of ~35% was observed at 250°C in presence of 1000 ppm ethanol for films deposited at highest deposition temperature.