This study proposed a strategy to prepare metalized pellets for direct steelmaking by hydrogen cooling reduction (HCR) of iron ore pellets with a focus on the effect of H2 flow rate on the process. It was demonstrated that increasing H2 flow rate could effectively enhance the reduction performance of iron ore pellets. However, due to the influence of the countercurrent diffusion resistance of gas molecules, too high H2 flow rate no longer promoted the reduction of the pellets when the maximum reduction rate was reached. The reduction swelling index (RSI) of the pellets initially increased and then decreased with increasing H2 flow rate. This change was associated with the decreased content of Fe2SiO4 in the metalized pellets and the changes in porosity and iron particle size. The compressive strength (CS) decreased continuously, showing a sharp decline when the H2 flow rate reached 0.6 L/min. It was attributed to the significant increases in porosity and average pore size of the metalized pellets, with the presence of surface cracks. When the H2 flow rate was 0.8 L/min, the metalized pellets had the optimal performance, namely, reduction degree of 91.45%, metallization degree of 84.07%, total iron content of 80.67 wt%, RSI of 4.66%, and CS of 1265 N/p. The findings demonstrated the importance of controlling the H2 flow rate in the preparation of metallized pellets by HCR.