Indium oxide and indium tin oxide composite (ITO) were prepared by sol-gel dip-coating (SGDC) technique. The particles annealed at (200 ◦C, 400 ◦C). The structure and surface morphology of particles were characterized by X-ray diffraction (XRD), Atomic Force Microscope (AFM), FT-IR and UV/visible measurements. The XRD and AFM indicate decreasing in the particle size and improve of optical and electrical properties of composite with increasing of tin oxide addition. The hall measurement were used to obtain information about the type of conductivity of indium oxide and indium tin oxide thin films and carrier concentration and mobility and resistivity, the results of Hall measurements show that the In2O3 and ITO composite have n-type. The thin film of composite ITO at composition (80:20) mole ratio has high sensitivity toward CO gas compared with pure indium oxide.