Abstract In thermal atomic layer etching (ALE) of Ni, a thin oxidized Ni layer is removed by a hexafluoroacetylacetone (hfacH) etchant gas at an elevated surface temperature, and etching ceases when a metallic Ni surface appears (self-limiting step). However, atomistic details of the self-limiting step was not well understood. With periodic density-functional-theory calculations, it is found that hfacH molecules barrierlessly adsorb and tend to decompose on a metallic Ni surface, in contrast to the case of a NiO surface, where they can form volatile Ni(hfac)₂. Our results clarify the origin of the self-limiting process in the thermal ALE.