The luminescence properties of polycrystalline ZnO annealed in reducing ambience ($H_2/N_2$) have been studied. An effective quenching of green luminescence with enhanced UV emission from polycrystalline ZnO is observed for the reduced ZnO. The variations of the UV and green luminescence band upon reduction treatment are investigated as a function of temperature in the range between 20 and 300 K. Upon annealing treatment in reducing ambience, the optical quality of polycrystalline ZnO is improved. The UV to green intensity ratio of sintered ZnO approaches close to zero (~0.05). However, this ratio reaches more than 13 at room temperature for polycrystalline ZnO annealed at $800^{circ}C$ in reducing ambience. Furthermore, the full width at half maximum (FWHM) of the UV band of polycrystalline ZnO is reduced compared to unannealed polycrystalline ZnO. Electron paramagnetic resonance (EPR) measurements clearly show that there is no direct correlation between the green luminescence and oxygen vacancy concentration for reduced polycrystalline ZnO.