Out of many applications of hydrogen plasma, reduction of metal oxides is an important one. The reduction can be carried out using carbon or hydrogen. While carrying out the reduction of hematite (Fe2O3) in hydrogen plasma, an attempt was made to characterize the hydrogen plasma by optical emission spectroscopy. The spectroscopic results provide some new and useful information. In addition to the hydrogen emission lines, two prominent lines at 589 and 589.6 nm were observed. These two lines are confirmed to be sodium D1 and D2 (Na D lines) by comparing with a low pressure sodium vapour lamp (LPSVL). The source of the trace amount of sodium is also confirmed to be from the metal oxide sample as an impurity. These lines are found to be very sensitive to various process parameters such as gas flow rate, microwave power, and reduction chamber pressure. The temporal variation of these two Na D lines also shows a characteristic trend during metal oxide reduction in hydrogen plasma. The weight loss and the X-ray diffraction analyses of reduced Fe2O3 sample for different time duration provides the evidence of correlation with Na D lines' intensity trend. This trend can be used to monitor the state and completion of hydrogen plasma based reduction reaction. In processes where Na is not associated with metal oxide, trace amount of Na in its molecular form such as NaOH can be introduced for monitoring the plasma process parameters as well as the plasma based reduction process.