The oxidation of NiAl(100) surfaces by water vapor is studied using X-ray photoelectron spectroscopy (XPS) to elucidate the effect of temperature and vapor pressure on the surface passivation mechanism of the NiAl alloy. The water-vapor oxidation at ambient temperature (25 °C) results in self-limiting Al(OH)3/Al2O3 bilayer film growth to a less extent of the limiting thickness regimes, in which the growth of the inner Al2O3 layer occurs via dehydration of the outer Al(OH)3 layer. The growth of the passivating overlayer at the ambient temperature depletes Al and forms a Ni-rich layer at the oxide/alloy interface that impedes supply of Al atoms to the outer surface for Al(OH)3 formation via the hydration reaction, whereby resulting in a more Al-deficient structure of the outer Al(OH)3 layer upon increasing the vapor pressure. In contrast, the water-vapor oxidation at 300 °C results in Al2O3 single-layer film growth to a larger limiting thickness without involving the transient hydroxide phase of Al(OH)3. It is shown that increasing the oxidation temperatures results in the formation of a more compact Al2O3 film owning to the enhanced bulk diffusion rate that maintains an adequate supply of Al atoms to the oxide/alloy interface to sustain the oxide film growth to the full extent of the limiting thickness.