Two additional vibration modes at 250 and 529 cm−1 were observed in hydrogenated Zn0.98Mn0.05O nanopowders. The number of oxygen vacancies was increased by hydrogenation, which induced the mode at 250 cm−1. The additional vibration mode at 529 cm−1 was due to the increase of the number of subsititutional Mn atoms occupying Zn sites, which resulted that some new lattice defects were introduced or intrinsic host-lattice defects became activated/intensified. The room-temperature ferromagnetism was observed in the hydrogenated Zn0.98Mn0.05O nanopowders prepared at high temperature (T=700 °C), which originated from the lattice defects such as oxygen vacancies and Zn interstitials.