Phase‐controlled synthesis of all‐inorganic perovskite nanocrystals (NCs) has attracted extensive attention for optoelectronic applications. However, H2O, often considered an unfavorable factor, has not been found to influence the resulting phase composition. Herein, the hydrolysis reaction‐induced phase regulation of 0D perovskite Cs–In–Cl: Sb NCs by manipulating the H2O addition is reported. Specifically, Cs–In–Cl: Sb crystallizes as Cs3InCl6: Sb in the absence of H2O addition. In contrast, the addition of H2O triggers the hydrolysis of the injected chlorine source (phenylphosphonic dichloride, PhPOCl2), resulting in an increased concentration of Cl− ions and subsequently promoting the formation of Cs4InCl7: Sb NCs. Moreover, the hydrogen bonds formed between isopropanol (IPA) and H2O/oleic acid (OA)/oleylamine (OAm) mitigate the immiscibility between the 1‐octadecene (ODE)/OA/OAm mixture and H2O, which facilitates the passivation of OA/OAm on the Cs4InCl7: Sb NCs. Additionally, it is demonstrated that a reversible phase transition between Cs4InCl7: Sb and Cs3InCl6: Sb can be achieved by heating–cooling cycles. Furthermore, the application for white light‐emitting diodes, information encryption, and fluorescent composite films based on Cs4InCl7: Sb NCs is showcased. This work not only paves a new strategy to regulate the phase composition of perovskites but also introduces a novel fluorescent material of Cs4InCl7: Sb for multifunctional applications.