This study investigates the oxidation state of ceria thin films' surface and subsurface under 100 mTorr hydrogen using ambient pressure X-ray photoelectron spectroscopy. We examine the influence of the initial oxidation state and sample temperature (25-450 °C) on the interaction with hydrogen. Our findings reveal that the oxidation state during hydrogen interaction involves a complex interplay between oxidizing hydride formation, reducing thermal reduction, and reducing formation of hydroxyls followed by water desorption. In all studied conditions, the subsurface exhibits a higher degree of oxidation compared to the surface, with a more subtle difference for the reduced sample. The reduced samples are significantly hydroxylated and covered with molecular water at 25 °C. We also investigate the impact of water vapor impurities in hydrogen. We find that although 1 × 10^-6 Torr water vapor oxidizes ceria, it is probably not the primary driver behind the oxidation of reduced ceria in the presence of hydrogen.