This paper presents the first controlled observations on electron temperature gradient (ETG) driven turbulence in finite beta (β ∼ 0.6) plasmas of the Large Volume Plasma Device (LVPD). The observed instability is investigated in the core region of the target plasma when a ∼2 m diameter magnetic electron energy filter is used. The observed instability in the lower hybrid range of frequencies has electromagnetic fluctuations associated with it and is characterized by broadband spectra with central frequency, ν ⩽ 10 kHz, and wave number, k⊥ = (0.1–0.2) cm−1, which satisfies the condition k⊥ρe ⩽ 1 where ρe is the electron Larmor radius. It is also observed that the observed mode satisfies the condition, k∥/k⊥ ≪ 1. A confirmation of it as ETG turbulence is demonstrated by its absence when ∇Te is made vanishingly small.