This paper finds that formaldehyde is a common indoor pollutant posing risks to health and is suspected as a carcinogen. Achieving high sensitivity and selectivity for real-time applications is challenging. This study develops a room-temperature formaldehyde chemiresistor using a CeO2/In2O3 nanocomposite. The nanocomposite, synthesized hydrothermally, features CeO2 nanospheres on In2O3 nanocubes, enhancing detection capabilities. It can detect formaldehyde and shows response to other substances like methanol, ethanol, aniline, benzene, toluene, acetone, and ammonia. The CeO2/In2O3 sensor demonstrates moderate to high selectivity, sensitivity, stability, quick response/recovery times, and humidity resilience. This work offers a promising approach for indoor formaldehyde detection.