The interaction of InN epitaxial films grown by r.f. plasma assisted molecular beam epitaxy with atomic hydrogen and nitrogen, produced by remote r.f. H2 and N2 plasmas, is investigated. InN strongly reacts with both atomic hydrogen and nitrogen yielding depletion of nitrogen and concurrent formation of In clusters. The impact of hydrogen treatments on the optical properties of InN is assessed using photoluminescence (PL). It is found that hydrogen suppresses the intense PL band peaked at approximately 0.7eV for the as-grown InN epitaxial layers, and results in the appearance of a new PL band whose peak energy and intensity increase with H-dose. The effect of exposure to atomic hydrogen and nitrogen on electrical properties of InN is investigated using Hall effect measurements. Atomic force microscopy is also used for studying the morphological changes of InN upon interaction with atomic hydrogen and nitrogen.