We studied the coherent four-wave scattering of light by phonon polaritons in LiNbO3:Mg crystals before and after chemical reduction, which resulted in strong increase of small polarons. Large broadening of polariton lineshape was observed in a chemically reduced lithium niobate. To explain this effect we studied optical properties of LiNbO3:Mg in the visible and JR regions, where the undoped LiNbO3 was transparent. As a result, absorption band was found, being sensitive to the chemical reduction. We assign this band to the small polaron absorption. The values of polaron shift and the mean value of frequency of optical phonons, which interact with free electrons in polaron formation, were measured. Influence of small polarons on polariton k-spectra was discussed.