Gallium nitride (GaN) and indium gallium nitride (InGaN) nanostructures, and their nanocomposites with reduced graphene oxide (rGO) are prepared by solvothermal method and used as sensing materials for ammonia gas. The ammonia sensing characteristics are studied by coating the synthesized GaN and InGaN nanostructures, and their nanocomposites on interdigitated electrodes. The sensing parameters, i.e., sensing response, selectivity, and stability, are studied for various operating temperatures and relative humidity. The pristine GaN and InGaN exhibit a sensing response of 23.8% and 28.1% for 200 ppm concentration at 300 K, whereas the nanocomposites of GaN and InGaN show an increased response of 37.4% and 44.2%. This improvement in the nanocomposites maybe ascribed to the better conductivity, higher number of gas adsorption sites and reduced bandgap. It is found that these materials are an excellent choice for ammonia gas sensing application.