Germanium (Ge) is a crucial semiconductor material. Germanium powder is typically manufactured through hydrogen reduction of germanium dioxide (GeO 2 ). However, the traditional reduction method frequently results in suboptimal hydrogen utilization, larger‐than‐desired granular sizes, and nonuniform granular distribution. In this article, a novel vertical gas‐flow field reduction process is proposed for addressing the above challenges, and the effects of reduction temperature and hydrogen flow rate are investigated. The results show that the novel process promotes the contact between GeO 2 and hydrogen, reducing H 2 O partial pressure at the reduction interface. Accordingly, conversion efficiency (the ratio of weight loss ratio W t to the theoretical maximum weight loss ratio W max ) is much higher than the traditional method by 20%–30%, and the obtained Ge powder conforms to the desired dimensions and uniformity. This article provides a novel process for manufacturing high‐quality germanium powder with a short production cycle, less hydrogen consumption, and low energy consumption.