Effect of in-/ex-situ annealing on the structure, optical, photoluminescence, electrical characterization and gas sensing dynamics on CdS thin films are presented. Raman characterizations showed an increase in the peak intensity with increasing the annealing temperature under ex-situ, while a lower peak intensity observed through the in-situ annealing condition. No shift was observed in the Photoluminescence peaks through the yellow band peaks of in-situ annealed samples, however, a slightly blue shift was observed through the ex-situ annealed samples. High conductivity was observed for all samples, while in the case of in-situ RT, in-situ 100 °C, ex-situ 200 °C and ex-situ 300 °C, a CO₂ and O₂ gas sensing activity have been tested. The ex-situ 300 °C sample shows a higher response towards CO₂ compared with the ex-situ 200 °C film. While, both in-situ RT and 100 °C sensors show the same response towards CO₂ with a high gas response. However, the in-situ 100 °C sensor has the highest response compared to in-situ RT film with a high response of 25% at 50 sccm towards O₂.