Metal organic frameworks (MOFs) are a class of porous organic-inorganic crystalline materials that have attracted much attention as H storage devices and catalytic supports. In this paper, the synthesis of highly-dispersed Ni nanoparticles (NPs) for the hydrogenation of olefins was achieved by employing Ni-MOF-74 as a precursor. Investigations of the structural transformation of Ni species derived from Ni-MOF-74 during heat treatment were conducted. The transformation was monitored in detail by a combination of XRD, in situ XAFS, and XPS measurements. Ni NPs prepared from Ni-MOF-74 were easily reduced by the generation of reducing gases accompanied by the decomposition of Ni-MOF-74 structures during heat treatment at over 300 °C under N flow. Ni-MOF-74-300 exhibited the highest activity for the hydrogenation of 1-octene due to efficient suppression of excess agglomerated Ni species during heat treatment. Moreover, Ni-MOF-74-300 showed not only high activity for the hydrogenation of olefins but also high size-selectivity because of the selective formation of Ni NPs covered by MOFs and the MOF-derived carbonaceous layer.