The aim of this work is to investigate metal–hydride transformation in Magnesium (Mg) nanoparticles decorated by Nickel (Ni). The samples were synthesized by Inert Gas Condensation: Mg single crystal nanoparticles were deposited on a metal substrate and subsequently their surface was exposed to evaporation of Ni. Structural analysis was made by Synchrotron Radiation Powder X-ray Diffraction and thermodynamic measurements by Sieverts apparatus. Ni decoration significantly improves the hydrogen release and uptake kinetics of the nanoparticles. The results connect the formation of Mg2Ni and Mg2NiH4 phases to the enhancement of hydrogen sorption properties.