Hydrogen (H2) gas, with its high calorimetric combustion energy and cleanness, is a green source of energy and an alternative to fossil fuels. However, it has a small kinetic diameter, with high diffusivity and a highly explosive nature. Hence, the reliable detection of H2 gas is essential in various fields such as fuel cells. Herein, we decorated ZnO nanoparticles (NPs) with Pd noble metal NPs, using UV irradiation to enhance their H2 gas-sensing performance. The synthesized materials were fully characterized in terms of their phases, morphologies, and chemical composition. Then, the sensing layer was deposited on the electrode-patterned glass substrate to make a transparent sensor. The fabricated transparent gas sensor was able to detect H2 gas at various temperatures and humidity levels. At 250 °C, the sensor exhibited the highest response to H2 gas. As a novelty of the present study, we successfully detected H2 gas in mixtures of H2/benzene and H2/toluene gases. The enhanced H2 gas response was related to the catalytic effect of Pd, the formation of heterojunctions between Pd and ZnO, the partial reduction of ZnO to Zn in the presence of H2 gas, and the formation of PdHx. With a high performance in a high response, good selectivity, and repeatability, we believe that the sensor developed in this study can be a good candidate for practical applications where the detection of H2 is necessary.