An analysis of the microstructure of nanocrystalline magnesium oxide produced by thermal decomposition of magnesium oxalate, in the temperature range 500 °C–1200 °C, is described. The study is based on diffraction line broadening analysis carried out with the integral breadth (Langford) and Fourier methods, combined with the pattern decomposition technique. Additionally, the whole pattern matching method is also applied. No marked line broadening anisotropy is observed in the patterns. It is shown that the nanopowders are characterized by minimal strain and that crystallites have an average spherical shape. Volume-weighted and area-weighted apparent sizes are in the ranges 98–480 Å and 72–282 Å, respectively, within the temperature range considered. The results obtained from line broadening analysis are compared to those observed with scanning electron microscopy and surface area measurements. A satisfactory agreement is found between sizes derived from the different techniques.