Polypyrrole thin films were synthesized in situ by chemical polymerization. Fourier transform infrared spectroscopy revealed formation of polypyrrole. The morphological studies by scanning electron microscopy showed formation of uniform granular structure with average grain size of 0.6 μm. The film composition was characterized by X-ray photoelectron spectroscopy for chemical composition in polypyrrole film. These films were investigated for their sensing behaviour towards NH3 and NO at room temperature. It has been observed that these films are selective for NH3 and the sensitivity exhibited a linear response in range of 4–80 ppm.