Nanostructured metal hydrides could play a key role in a hydrogen economy. The nanostructuring or confinement of these materials as, e.g., thin films significantly affects the structural and functional properties. For tantalum hydride, a versatile hydrogen sensing material, we show that the confinement of tantalum as a thin film extends the solubility limit by suppressing the phase transition observed in bulk upon hydrogenation. Different from bulk, the body centered cubic unit cell continuously deforms with unequal lattice constants and angles between lattice vectors. This deformation ensures that the volumetric expansion is realized in the out-of-plane direction, and surprisingly, completely elastic in nature. The first-order phase transition suppression combined with the continuous elastic deformation of the tantalum unit cell over an extraordinary wide solubility range ensures the superb performance of tantalum and its alloys as a hysteresis-free optical hydrogen sensing range over a hydrogen pressure/concentration range of over 7 orders of magnitude.