This review aims to present a critical overview of indium tin oxide (ITO) thin film preparation methods, structure–property relationship, and its humidity sensing. A range of passive and active humidity sensors with thin films (based on metal oxides) detects humidity. ITO thin film has advantageous properties, such as low resistivity and high stability, making it highly suitable for humidity sensing applications. ITO thin film has shown the efficient level of humidity sensing, and a compatible size of humidity sensor can monitor the interface conditions humidity. So far, the application of ITO thin film for humidity measurement has yet to be explored at commercial scale, specifically in the detection of lower environmental humidity range (below 5% relative humidity (RH)). The research reveals a gap in improving the ITO thin film properties with an optimal range of preparation conditions. The research opportunities in the preparation, properties, characteristics, and efficient humidity sensitivity of ITO thin film are reviewed in this work.