The property and performance of the nanocomposites have been known to strongly depend on the structural feature of Ni nanodispersoids which affects considerably the structure of matrix. Such nanodispersoids undergo structural evolution in the process of consolidation. Thus, it is very important to understand the microstructural development of Ni nanodispersoids depending on the structure change of the matrix by consolidation. The present investigation has focused on the growth mechanism of Ni nanodispersoids in the initial stage of sintering. powder mixtures were prepared by wet ball milling and hydrogen reduction of and Ni oxide powders. Microstructural development and the growth mechanism of Ni dispersion during isothermal sintering were investigated depending on the porosity and structure of powder compacts. The growth mechanism of Ni was discussed based upon the reported kinetic mechanisms. It is found that the growth mechanism is closely related to the structural change of the compacts that affect material transport for coarsening. The result revealed that with decreasing porosity by consolidation the growth mechanism of Ni nanoparticles is changed from the migration-coalescence process to the interparticle transport mechanism.