Most of the shinobi would be terrified at first. Naruto, being the curious and brave one, would probably be the first to approach Godzilla. Sasuke might be more cautious, seeing Godzilla as a potential threat. Sakura would be worried about the safety of the village. The older shinobi like Kakashi would try to analyze the situation and figure out how to deal with this unknown giant creature.
The ninja of Konoha would be on high alert. Naruto would be excited yet cautious. He'd want to understand Godzilla and see if it could be an ally. Tsunade would be worried about the destruction Godzilla could cause to the village. The rookies like Rock Lee would be eager to test their strength against Godzilla, thinking it was a great opponent to show their skills. Kiba might think his ninken could be useful in scouting around Godzilla to find its weaknesses.