Effect of mixed gas and additional Mg powder in an annealing process of the $MgB_2$ is investigated. Four different type of samples were prepared, each in different annealing environment of Ar, $Ar+4%H_2$, Ar with Mg powder and $Ar+4%H_2$ with Mg powder. Different annealing environment did not affect the electron-phonon interaction which is reflected from the same superconducting transition of 36.6 K for all samples. The reducing effect of hydrogen is clearly depicted from the presence of excess Mg in sample synthesized in $Ar+4%H_2$ gas implying the reduced rate of reaction between Mg and B. This has manifested itself in terms of slightly increased high-field critical current density of the sample. In contrast, the sample synthesized in $Ar+4%H_2$ with Mg powder, has shown overall enhancement in the superconducting properties as presented by higher diamagnetic saturation and critical current density.