Hexagonal CoO nanocrystals are coarsened under hydrothermal conditions to investigate the effect of particle size on phase transformation and stability property. Structural stability and phase transformation of the hexagonal CoO phase have been investigated by X-ray powder diffraction with Rietveld refinement, transmission electron microscopy, X-ray absorption fine structure, and differential scanning calorimeter. It is found that the hexagonal CoO phase is a metastable phase, which increases its grain size from 50 to 250 nm for refluxing times from 1 to 6 h at 200 degrees C. After 12 h, cubic-structured CoO grains with an average grain size of 20 nm are observed, which spread around big hexagonal CoO grains. After about 24 h, only the cubic CoO phase with an average grain size of 25 nm is detected. The onset temperature of hexagonal-to-cubic phase transformation in CoO is estimated to be 378 degrees C by DSC, using a heating rate of 20 deg/min. The results obtained indicate that the hexagonal-to-cubic phase transformation in nanocrystalline CoO is by nucleation and growth mechanism, starting from the surface to the center of the hexagonal grains.