We report the correlation between d(0) ferromagnetism, photoluminescence (PL), and adsorbed hydrogen (H-) species in magnesium oxide (MgO) nanocrystallites. Our study suggests that the oxygen vacancies, namely singly ionized anionic vacancies (F+) and dimers (F-2(2+)) induce characteristic photoluminescence and the room-temperature ferromagnetic spin-order. Nanocrystallites with low population of oxygen vacancies have revealed diamagnetic behavior. Intriguingly, on adsorption of hydrogen (H-) species in the MgO nanocrystallites, ferromagnetic behavior was either enhanced (in the case of highly oxygen deficient nanocrystallites) or begun to percolate (in the case of nanocrystallite with low population density of oxygen vacancies). (C) 2012 American Institute of Physics. [http://dx.doi.org/10.1063/1.4712058]