Oxidative etching has widely prevailed in the synthesis of a crystal and played a critical role in determining the final growth behavior. In this Letter, we report an in situ microscopic study on the oxidative etching of palladium cubic nanocrystals by liquid cell scanning transmission electron microscopy. The etching was realized with oxidative radiation reactants from electron–water interaction in the presence of Br– ions. Dissolution dynamics of monodispersed and aggregated nanocrystals were both investigated and compared. Analyses on the dissolution kinetics of nanocrystals and the diffusion kinetics of the dissolved agents were carried out based on the scanning transmission electron microscopy characterizations. The results presented here pave a way toward the quantitative understanding of the oxidative etching reaction and its application in the functionally orientated fabrication of nanocrystals with certain sizes, structures, and morphologies.