A re-entrant novel phase has been observed in the hexagonal ferroelectric HoMnO3 in the presence of magnetic fields, in the temperature ranges defined by the plateau of the dielectric constant anomaly. The dielectric plateau evolves with fields from a narrow sharp dielectric peak at the Mn-spin rotation transition at 32.8 K in zero magnetic field. Such a field-induced dielectric plateau anomaly appears both in the temperature sweep at a constant field and in the field sweep at a constant temperature without detectable hysteresis. This is attributed to the indirect coupling between the ferroelectric and antiferromagnetic orders, arising from an antiferromagnetic domain wall effect, where the magnetic order parameter of the Mn subsystem has to change sign across the ferroelectric domain wall in the compound, that influences the ferroelectric domains via a local magnetostrictive effect.