In₂O₃/SnO₂ composite nanoparticles (NPs) were synthesized by a hydrothermal method. Fringes and spotty patterns were observed in high-resolution TEM images and corresponding selected area electron diffraction pattern, respectively, suggesting the nanoparticles were single crystals. X-ray diffraction results revealed that the In₂O₃/SnO₂ composite NP sensor consisted of three phases: In₂O₃, SnO₂ and In₂Sn₂O7-x (indium tin oxide: ITO). Energy-dispersive X-ray spectrum of the 9:1 In₂O₃/SnO₂ composite NPs showed the atomic ratio of In₂O₃ to SnO₂ was close to 9:1. The response of the chemiresistive sensor to CO was 9.2, which is within the highest 15% among the response values reported for the past 10 years. The ITO NP-based gas sensor is selective toward CO against other reducing gases such as toluene, acetone and benzene. The enhanced response of the 9:1 In₂O₃/SnO₂ composite NP sensor to CO compared to the pure In₂O₃ NP sensor can be explained mainly by the stronger resistance modulation at the In₂O₃/SnO₂ junctions.