Hydroxyurea is a potent remedy against a variety of ailments and an efficient inhibitor of DNA synthesis, yet its pharmacology is unclear. Hydroxyurea acts in Escherichia coli by the same mechanism as it does in eukaryotes, via inhibition of ribonucleotide reductase. When examining a controversy about concentrations of hydroxyurea that prevent thymineless death in E. coli, we found instability in hydroxyurea solutions which avoided prior detection due to its peculiar nature. In contrast to freshly dissolved hydroxyurea, which did not affect respiration and was bacteriostatic, one-day-old hydroxyurea solutions inhibited respiration and were immediately bactericidal. Respiration was inhibited by two gasses, hydrogen cyanide (HCN) and nitric oxide (NO), whose appearance we detected in “aged” hydroxyurea stocks by GC-MS; however, neither gas was bactericidal. While determining the cause of toxicity, we found that hydroxyurea damages DNA directly. We also demonstrated accumulation of peroxides in hydroxyurea solutions by enzymatic assays, which explains the toxicity, as both NO and HCN are known to kill bacteria when combined with hydrogen peroxide. Remarkably, we found that bactericidal effects of NO + H2O2 and HCN + H2O2 mixtures were further synergistic. Accumulation of decomposition products in solutions of hydroxyurea may explain the broad therapeutic effects of this drug.