Process analysis was carried out during deposition of MgO by inductively coupled plasma assisted reactive magnetron sputtering in Ar and $O_2$ ambient. At the initiation of Mg sputtering with bipolar pulsed dc power in Ar ambient, total pressure showed sharp increase and then slow fall. To analyse partial pressure change, QMS was used in downstream region, where the total pressure was maintained as low as $10^{-5}$ Torr during plasma processing, good for ion source and quadrupole operation. At base pressure, the major impurity was $H_2O$ and the second major impurity was $CO/N_2$ about 10%. During sputtering of Mg in Ar, $H_2$ soared up to 10.7% of Ar and remained as the major impurity during all the later process time. When $O_2$ was mixed with Ar, the partial pressure of Ar decreased in proportion to $O_2$ flow rate and that of $H_2$ dropped down to 2%. It was understood as Mg target surface was oxidized to stop $H_2$ emission by Ar ion sputtering. With ICP turned on, the major impurity $H_2$ was converted into $H_2O$ consuming $O_2$ and C was also oxidized to evolve CO and $CO_2$.