Understanding the properties of solid-state materials at the nanoscale is a crucial scientific endeavor in the pursuit of a sustainable energy future. Since magnesium hydride is the most practical material for hydrogen storage, research is still ongoing to reduce the enthalpy for dehydrogenation. In this computational theory, we systematically investigated the enthalpy of dehydrogenation of MgnHm nanoclusters of different sizes (0.5–2.8 nm) through density functional theory (DFT) and ab-initio molecular dynamic (AIMD) simulations. Our results revealed that increasing the MgnHm nanocluster size can remarkably improve the formation energy compared to the MgH2-bulk stabilization; the formation energy shifted from −65.12 kJ/mol for (0.5 nm)-MgnHm nanocluster to −51.37 kJ/mol for (2.8 nm)-MgnHm nanocluster. As compared to bulk phase, the lower stability of the nanoclusters indicates that it is much easier to desorb hydrogen from the surface. According to the effects of compressive/tensile strains, (2.8 nm)-MgnHm nanocluster does not improve the dehydrogenation temperature in the desired direction. Unlike metal doping, 9.10%@Ni and 10.14%@V-doped (2.8 nm)-MgnHm nanocluster exhibit formation energies of −47.27 and −46.34 kJ/mol with calculated desorption temperatures of 362.89 and 355.75 K, respectively, which ensures the room temperature applicability of this hydrogen storage material.