In this study, sputtered-assisted CuO-decorated ZnO nanorod (NR) gas sensors were fabricated for ethanol gas sensing studies. CuO nanoparticles have been successfully formed on ZnO nanorods by means of a physical process as the decorative metallic element. The amount of decoration affecting the sensor's performance has been optimized. Cu layers with different thicknesses of 5, 10, and 20 nm were deposited on hydrothermally grown ZnO NRs using the sputtering technique. Upon subsequent annealing, Cu was oxidized to CuO. The gas sensing studies revealed that the sensor with an initial Cu layer of 5 nm had the highest response to ethanol at 350 °C. The sensor also showed good selectivity, repeatability, and long-term stability. The enhanced ethanol sensing response of the optimized gas sensor is related to the formation of p-n heterojunction between p-type CuO and n-type ZnO and the presence of the optimal amount of CuO on the surface of ZnO NRs. The results presented in this study highlight the need for optimizing the amount of Cu deposition on the surface of ZnO NRs in order to achieve the highest response to ethanol gas.