As a p-type metal oxide, nickel oxide (NiO) has been extensively utilized for providing a favorable hole transport pathway in organic solar cells (OSCs). To obtain higher crystallinity, a post-annealing process at high temperature is required for the NiO layer. Therefore, fluorine-doped tin oxide (FTO) glass has been widely used for the substrate of NiO. However, the rough surface of the FTO substrate deteriorates the interfacial properties of the NiO layer, which hinders efficient charge extraction in OSCs. In this study, a facile polyethylene glycol (PEG)-assisted sol-gel synthesis of the compact NiO layer as the hole-selective layer is demonstrated. The compact NiO layer has a significantly uniform and smooth surface morphology, facilitating better interfacial properties for favorable charge transport. The modified interfacial properties outstandingly promote the charge migration and recombination blocking in OSCs. In addition, a hybrid structure with compact NiO and poly(3,4-ethylenedioxythiophene) polystyrene sulfonate (PEDOT:PSS) is designed to form a cascade charge extraction and passivate possible pinholes on the NiO layer. Consequently, the compact NiO layer enhances all the parameters determining the power conversion efficiency, including the open-circuit potential (Voc), short-circuit current density (Jsc), and fill factor (FF).