We prepare of ZnO quantum dots embedded in polyvinylpyrrolidone (PVP) matrix and report it’s working as ethanol sensor. The samples have been prepared via quenching technique where bulk ZnO powder is calcined at very high temperature of 1200°C and then quenched into ice cold polyvinylpyrrolidone solution. Thee acteiut the samples specimen have been characterized by using UV/VIS spectroscopy, X-ray diffracttion study and high resolution transmission electron microscopy (HRTEM). These studies indicate the sizes of quantum dots to be within 10 nm. The prepared quantum dot samples have been examined for ethanol vapour sensing by exploring the variation of their resistance with time at different operating temperatures. It has been revealed that ZnO quantum dots can sense ethanol at low operating (230°C) temperature with less response time.