The role of N2 carrier gas toward the conversion of tar analogue (toluene) was studied in a non-thermal plasma dielectric barrier discharge reactor. The parameters investigated were power (5–40 W), residence time (1.43–4.23 s), toluene concentration (20–82 g/Nm3), and wall temperature (from ambient to 400 °C). Almost complete removal (99%) of toluene was observed at 40 W and 4.23 s. The main gaseous product was H2, with a maximum selectivity of 40%. The other gaseous products were lighter hydrocarbons (LHCs, C1–C6, 5.5%). The selectivity to these LHCs could be increased to 10% by increasing the temperature to 400 °C. Introducing H2 to the N2 carrier gas at elevated temperatures opened up new reaction routes to enhance the selectivity to LHCs. The selectivity to methane reached 44% at 35% H2 at 400 °C, and the total selectivity to LHCs reached 57%.