AbstractTransition‐metal nanoparticles hold great promise as electrocatalysts for alkaline hydrogen evolution reaction (HER), however, addressing the simultaneous challenges of ensuring sufficient active sites, promoting favorable water dissociation, and optimizing binding energy toward hydrogen intermediates remains a formidable task. To overcome these hurdles, a novel gaseous hydrogen engineering strategy is proposed by in situ embedding cobalt nanoparticles within a samarium hydride matrix (Co/SmH2) via hydrogen‐induced disproportionation of SmCo5 particles for efficient alkaline HER. The as‐designed Co/SmH2 delivered an overpotential as low as 252 mV at 100 mA cm−2, surpassing the performance of pristine Co by 100 mV. Notably, this catalyst lasts remarkably long maintaining a durability at ≈500 mA cm−2 for 120 h. A combination of in situ Raman spectroscopy, in situ X‐ray absorption spectroscopy, density functional theory calculation and post‐HER characterizations unambiguously unveiled that the surface SmH2 transforms into samarium (hydr)oxide during electrocatalysis. This transformation not only inhibits the aggregation of the ultrafine cobalt nanoparticles but also significantly enhances the water dissociation and optimizes the binding energy of active cobalt species toward hydrogen intermediate, resulting in concurrent improvement of kinetics, thermodynamics, and stability of the HER process.