Phase stability of α-, β-, γ-, and δ′-MgH 2 -derived nanostructures have been investigated using ab initio projected augmented plane wave method. Structural optimizations based on total energy calculations predicted that β-derived nanoparticles and α-derived nanowhiskers are more stable than those derived from other polymorphs. Present study indicates that the crystal structure of the bulk phase plays a significant role on the stabilization of different forms (nanoparticles or nanowhiskers) of nanophases. The predicted critical sizes of the stable β-nanoparticle and α-nanowhisker for MgH 2 are 2.4 and 1.5 nm, respectively. The calculated hydrogen site energies suggest that it is relatively easier to remove hydrogen from the surface of the nanoparticles and nanowhiskers compared to that from bulk crystals. Among the considered nano-objects, removing hydrogen from the β-derived nanocluster is much easier, and hence, the present study suggests that one can use these nanoparticles for practical applications. NMR-related parameters are calculated for different sizes of the nanoclusters and nanowhiskers.