In this work, we investigate the degradation behavior and mechanism of p-gate AlGaN/GaN high-electron-mobility transistors (HEMTs) for the first time under hydrogen (H2) atmosphere. The experimental results reveal significant decrease in drain-to-source current, negative drift in threshold voltage, increase in off-state gate leakage current, and deterioration of subthreshold swing in the p-gate AlGaN/GaN HEMT after H2 treatment. The degradation of the electrical parameters is considered to hydrogen poisoning phenomenon. Through secondary ion mass spectrometry and variable temperature photoluminescence spectroscopy, we observe the increase in hydrogen concentration in the p-GaN layer and the formation of electrically inactive Mg-H complexes after H2 treatment. As results, the effective hole concentration decreases and the trap density of the device increases, which are confirmed by Hall effect measurement and low-frequency noise analysis, respectively. The detrimental effect of hydrogen on p-gate AlGaN/GaN HEMTs can be attributed primarily to the compensation of Mg doping and the generation of defects.