The thermal stability of lithium‐rich layered oxide with the composition Li(Li1/6Ni1/6Co1/6Mn1/2)O2−xFx (x=0.00 and 0.05) is evaluated for use as a cathode material in lithium‐ion batteries. Thermogravimetric analysis, evolved gas analysis, and differential scanning calorimetry show that, upon fluorine doping, degradation of the lithium‐rich layered oxides commences at higher temperatures and the exothermic reaction is suppressed. Hot box tests also reveal that the prismatic cell with the fluorine‐doped powder does not explode, whereas that with the undoped one explodes at about 135 °C with a sudden temperature increase. XRD analysis indicates that fluorine doping imparts the lithium‐rich layered oxide with better thermal stability by mitigating oxygen release at elevated temperatures that cause an exothermic reaction with the electrolyte. The origin of the reduced oxygen release from the fluorinated lithium‐rich layered oxide is also discussed.