Density functional theory (DFT) calculations were employed to elucidate the impact of hydrogen interstitial (Hi) defects on the optical and efficacy of iron pyrite (FeS2) as a selective carbon dioxide reduction catalyst (CO2RR). Three different charge states were considered, namely Hi1, Hi0 or Hi−1. Upon examining the formation energy of the various possible charge states that the Hi can accommodate, it was found that Hi will be incorporated in the structure as an n-type defect in the (+1) state across almost the entire bandgap. However, under heavy n-type growth conditions, it can act as an amphoteric dopant, and can accommodate the 3 states simultaneously. The performance of FeS2-H in CO2RR is compared to the pristine counterpart. The calculations show that the addition of Hi facilitates the methanol pathway by prioritizing the attachment of the COOH* intermediate. Consequently, Hi promotes the formation of C1 compounds with higher performance. This is achieved by inhibiting the competitor hydrogen evolution reaction (HER), leading to a significant improvement in the efficiency.