The influences of acetic acid addition to Mg‐methoxide on the stability of the precursor and the crystallization behavior of sol–gel‐derived MgO nano‐powders and thin films were investigated using X‐ray powder diffraction, transmission electron microscopy, Fourier‐transformed infrared spectroscopy, and thermogravimetry. The addition of acetic acid enhanced the stability of the alkoxide against precipitation. Moreover, during postheat treatment of the gel powders treated with acetic acid, a significantly lowered crystallization temperature (250°C) was observed as compared to the untreated counterpart (350°C). The low‐temperature crystallization of MgO, induced by the modification of Mg‐methoxide with acetic acid, was related to the decomposition of organics at a lower temperature. These results could be explained in terms of the decrease of the O–R bond strength depending on the increase in the alkyl group size. MgO thin films having a high degree of crystallinity were successfully obtained from the Mg‐methoxide treated with acetic acid at 300°C. The low‐temperature crystallization of sol–gel‐derived MgO thin films showed the feasibility for their application as a protective layer in alternative current plasma display panel cells.