Very fine nickel hydroxide and oxide xerogel powders were prepared using a new sol-gel synthesis procedure in which nickel ethoxide was produced through the reaction of nickel chloride, as a precursor, with sodium ethoxide in dehydrated ethanol, followed by the hydrolysis of nickel ethoxide with ammonia and drying the resulting hydrogel under subcritical pressures to form the xerogel. The effects of thermal treatment on the surface area, pore volume, crystallinity and particle structure of the resulting xerogels were investigated and found to have significant effects on all of these properties. Overall, the xerogel remained amorphous as Ni(OH)2 space up to 200°C, with little change in the surface area and pore volume. At 250°C, the Ni(OH)2 began to decompose and form crystalline NiO with the uniformity of the crystals increasing with an increase in temperature. The surface area and pore volume decreased sharply when increasingthe temperature beyond 250°C; this was the temperature where maximums of about 270 m2/g and 0.33 cm3/g were exhibited by this composite amorphous Ni(OH)2 and crystalline NiO xerogel powders. At the higher calcination temperatures, very uniform NiO crystals with average crystallite sizes of ∼1.7 nm and ∼14.5 nm were obtained at 400 and 600°C, respectively.