The thermal stability of an equilibrium phase may be tuned due to lattice strain and distortion induced by nanosizing. We apply these effects to destabilize magnesium hydride, a promising hydrogen storage material owing to its high gravimetric hydrogen density but with a too high operating temperature/low supply pressure of hydrogen for most practical applications. The destabilization is attempted with MgH₂ in contact with high entropy alloy (HEA), in which multiple metal atoms lead to lattice strain and distortion. Here, two HEAs, CrMnFeCoNi with a face centered cubic (fcc) structure and TiVZrNbHf with a body centered cubic (bcc) structure, were prepared. Subsequently, they were cosputtered with Mg to synthesize Mg−HEA thin films, respectively. Although, in the Mg−CrMnFeCoNi thin films, miscible metals with Mg as Co and Ni may hamper the formation of independent Mg domains, a small proportion of Mg atoms form destabilized MgH₂. In contrast, Mg and TiVZrNbHf domains are chemically segregated at the nanoscale in the Mg−TiVZrNbHf thin films. The formation of nanometer-sized Mg domains is promoted by atomic rearrangement following the structural change of TiVZrNbHf from a bcc to an fcc structure upon hydrogenation, resulting in distorted and destabilized MgH₂. Our strategy to use HEAs and the structural change upon hydrogenation for the formation of destabilized MgH₂ is effective and opens up the possibility for the development of advanced and low-cost hydrogen storage and supply systems.