This study aims to optimize the deposition condition of Nickel hydroxide (NiOxHy) films for electrochromic devices by adjusting the H2 gas concentration during the reactive direct current magnetron sputtering. The influence of H2 content on the crystallinity, chemical composition, optical properties, and electrochromic behavior of the NiOxHy films was thoroughly investigated. In the absence of H2 gas in the sputtering system, the Nickel oxide (NiOx) film was obtained as confirmed by the X-ray diffraction results. However, introducing the H2 gas resulted in the formation of NiOxHy film, accompanied by a decrease in the film crystallinity. Fourier transform Infrared spectra were employed to confirm the presence of hydroxyl groups in the as-deposited NiOxHy films. X-ray photoelectron spectroscopy was employed to examine the influence of H2 content on the optical properties of the NiOxHy film. Additionally, it offered valuable insights into the film's chemical composition during the transition from a dark to a transparent state. Our findings revealed that increasing the H2 gas content enhanced the transmittance of NiOxHy films. Here, the optimal H2 flow ratio of 50 % was found to yield a high transmittance of 77.43 % (T550) along with the highest charge density, an optical density changed value of 0.84, and a coloration efficiency value of 83.67 cm2/C. These findings clearly illustrate the substantial influence of H2 concentration on the properties of NiOxHy films, particularly in relation to their application in electrochromic devices.