Reducing the operating temperature to room temperature is a serious obstacle on long-life sensitivity with long-term stability performances of gas sensors based on semiconducting oxides and this should be overcome by new nano-technological approaches. In this work, we report the structural, morphological, chemical, optical and gas detection characteristics of Eu-doped ZnO (ZnO:Eu) columnar films as a function of Eu content. The scanning electron microscopy (SEM) investigations showed that columnar films, grown via synthesis from chemical solutions (SCS) approach, are composed of densely packed columnar type grains. The sample sets with a content of ~0.05, 0.1, 0.15 and 0.2 at% of Eu in ZnO:Eu columnar films were studied. The surface functionalization was achieved using PdCl2 aqueous solution with additional thermal annealing in air at 650 ºC. The temperature dependent gas-detection characteristics of Pd-functionalized ZnO:Eu columnar films were measured in detail, showing a good selectivity towards H2 gas at operating OPT temperatures of 200-300 ºC among several test gases and volatile organic compounds (VOCs) vapors; such as methane, ammonia, acetone, ethanol, n-butanol and 2propanol. At an operating temperature OPT of 250 ºC a high gas response Igas/Iair ~ 115 for 100 ppm H2 was obtained. Experimental results indicate that Eu-doping with an optimal content about 0.05-0.1 at% along with Pd-functionalization of ZnO columns leads to a reduction of the operating temperature of the H2 gas sensor. DFT based computations provide mechanistic insights into the gas sensing mechanism by investigating interactions between the Pd-functionalized ZnO:Eu surface and H2 gas molecules supporting the experimentally observed results. The proposed columnar materials and gas sensor structures would provide a special advantage in the fields of fundamental research, applied physics studies, ecological and industrial applications.