The employment of hydrogen has shown a lot of promises as an alternative for conventional fuel sources. However, if not handled properly, hydrogen content as low as 4% can lead to a life-threatening catastrophe. Some sensors for hydrogen detection have already been built to address this safety issue. Unlike most of the traditional hydrogen sensors, the sensor developed in this study features high sensitivity, fast response, miniature size, and the ability to detect hydrogen under room temperature. The sensor template has a special nanoporous structure, coming from self assembled aluminum oxide after anodization process. Deposition of palladium particles into the nanopores brings superb hydrogen sensing ability by introducing a granular structure of sensing particles. The sensor prototype has been tested under controlled atmosphere with varying hydrogen concentrations.