The reaction mechanism and efficiency of hydrogen deoxidation used in ultra-low carbon steel are explored in this work. A combination of first-principle simulations and thermodynamic calculations were performed on the reaction mechanisms of hydrogen with dissolved oxygen. Laboratory thermal state experiments were used to analyze the effects of different initial oxygen contents of steel and different hydrogen injection flow rates on the deoxidation ability. The results show that the hydrogen deoxidation mainly happens with the gas state of H2 since there are more reactive sites of H atoms in the gas bubble compared to the dissolved H. Higher initial oxygen content and larger hydrogen blowing flow rate are beneficial to the deoxidation reaction efficiency. With hydrogen deoxidation, the inclusion number can be reduced by half compared to Al deoxidation, and the finally total oxygen content can reach 6.8 × 10-6. The actual reaction hydrogen utilization efficiency fluctuates between 0.13%-1.17% in this study, which can be improved by extending the resistance time of H2 bubbles in the molten steel. This paper provides in-depth theoretical support and atomic-scale insights into the reaction between hydrogen and oxygen in steel, building a foundation for the hydrogen application in the production of ultra-low-carbon steel.