The microstructur and LPG sensing properties of maghemite (${gamma}-Fe_2O_3$) ceramics have been studied. The acicular and fine spherical shaped iron oxide particles were sintered at below $900^{circ}C$. The maghemite ceramics were prepared by reduction-oxidation of sintered iron oxide. With the microstructure of acicular and/or fine grains, the maghemite ceramics have good LPG sensing properties. Increased sintering temperature deteriorates the LPG sensitivity of maghemite ceramics due to the grain growth. The maghemite ceramics prepared from the mixed iron oxide, of a large amount of acicular particles and a small amount of spherical ones, have a lower LPG sensitivity than that of the acicular iron oxide ceramics. But, they seem to be of higher mechanical strength. The optimum working temperature for LPG sensing of the maghemite ceramics was found to be $300~350^{circ}C$.