Using a three-stage dielectric packed-bed plasma reactor at atmospheric pressure, the destruction of ethylene, a typical volatile organic compound, and the generation of major by-products have been studied by means of Fourier Transform Infrared Spectroscopy. A test gas mixture air at a gas flow of 1 slm containing 0.12% humidity with 0.1% ethylene has been used. In addition to the fragmentation of the precursor gas, the evolution of the concentration of ten stable reaction products, CO, CO2, O3, NO2, N2O, HCN, H2O, HNO3, CH2O, and CH2O2 has been monitored. The concentrations of the by-products range between 5 ppm, in the case of NO2, and 1200 ppm, for H2O. By the application of three sequentially working discharge cells at a frequency of f = 4 kHz and voltage values between 9 and 12 kV, a nearly complete decomposition of C2H4 could be achieved. Furthermore, the influence of the specific energy deposition (SED) on the destruction process has been studied and the maximum value of SED was about 900 J l−1. The value of the characteristic energy β, characterizing the energy efficiency of the ethylene destruction in the reactor, was found to be 330 J l−1. It was proven that the application of three reactor stages suppresses essentially the production of harmful by-products as formaldehyde, formic acid, and NO2 compared to the use of only one or two stages. Based on the multi-component detection, the carbon balance of the plasma chemical conversion of ethylene has been analyzed. The dependence of the fragmentation efficiencies of ethylene (RF(C2H4) = 5.5 × 1019 molecules J−1) and conversion efficiencies to the produced molecular species (RC = (0.1–3) × 1016 molecules J−1) on the discharge conditions could be estimated in the multistage plasma reactor.