Nano structured ZnMgO was synthesized by self combustion method using glycine as a fuel. The synthesized microstructure materials were investigated by TG-DTA, XRD, SEM, TEM, and E-DAX. Observed results shows the product, is the mixture of ZnMgO, its particle size is about 45-55 nm with loosely agglomerated shape. Electrical properties of the synthesized nanoparticles were studied by AC conductivity measurement. The gas sensing properties were studied towards reducing gases viz. ammonia, hydrogen, acetone, chlorine, liquefied petroleum gas (LPG), etc. and it was observed that the nano structured ZnMgO shows high response to hydrogen at 200 °C and no cross sensitivities to other reducing gases. These nanoparticles were good I-V characteristics with ohmic nature. The quick response ( ~10 s) and fast recovery (~ 20 s) are the main features of these sensors. The effects of nanostructure on the gas sensing performance were studied and discussed.