The catalytic cracking of pyrolysis gasification tar into H2 has garnered significant attention due to its exceptional conversion efficiency. In this study, the effects of pollutant concentration, residence time, weight hourly space velocity (WHSV), and reaction temperature on the hydrogen performance of LaFe0.5Ni0.5O3 perovskite were comprehensively investigated. Results revealed that moderate pollutant concentration (0.3 g/L), low-medium residence time (250 SCCM), and low WHSV (0.24 gtoluene/(gcat·h)) facilitated efficient interaction between LaFe0.5Ni0.5O3 and toluene, thus achieving high hydrogen production. An increase in reaction temperature had minimal effect on the hourly hydrogen production above 700 °C but caused a significant increase in methane production. Additionally, the effects of oxygen evolution reactions, methane reactions, and methane catalytic cracking reactions of perovskite induced by different reaction conditions on tar cracking products were discussed in detail. Compared to previous reports, the biggest advantages of this system were that the hydrogen production per gram of tar was as high as 1.002 L/g, and the highest hydrogen content in gas-phase products reached 93.5%, which can maintain for approximately 6 h. Finally, LaFe0.5Ni0.5O3 showed good thermal stability, long-term stability, and catalyst reactivation potential.