Detecting the hazardous gases for monitoring air pollution and medical diagnosis make highly sensitive gas sensors appeal to many researches. In this paper, benefiting from unique properties of noble metals, Al-doped ZnO based Ethanol sensors were fabricated and characterized in three structures including Al: ZnO thin film, Silver and Gold nano-islands on Al: ZnO thin film. The Silver and Gold thin films turn to nano-islands after a simple annealing process. The XRD analysis of the sputtered Al: ZnO layer indicates the wurtzite crystal structure of the layer with a peak at (002) plane. Moreover, the sensitivity study reveals that Nano-islands of noble metals substantially affects the sensitivity of the sensors. The decorated Gold nano-island Al: ZnO Ethanol sensor has the highest response showing an amount of 45. The response of Al: ZnO and Silver decorated Al: ZnO sensors are virtually identical to all concentrations of Ethanol, whereas the Al: ZnO gas sensor with Gold nano-islands has the substantial sensitivity for different concentrations. In addition, the response times of the sensors are 85, 70 and 90 s for Al: ZnO, Al: ZnO with Ag islands and Al: ZnO decorated by Au islands, respectively. The recovery time of Al: ZnO sensor decorated by Au islands is about 23s, while the recovery time of the Al: ZnO and Al: ZnO decorated by Silver islands are 360 and 370s, respectively. Hence, the simple annealing process on the sputtered gas sensor with a thin layer of Gold makes nano-islands on the sensor which elevates the performance of Ethanol sensing due to the high sensitivity and sensitivity of the sensor.