The development of non-precious metal electrocatalysts for renewable energy conversion and storage is compelling but greatly challenging due to low activity of the existing catalysts. Herein, the ultrathin NiAl-layered double hydroxide nanosheets (NiAl-LDH-NSs) are prepared by simple liquid-exfoliation of bulk NiAl-LDHs and first used as ethanol electrooxidation catalysts. The ultrathin two-dimensional (2D) structure ensures that the LDH nanosheets expose a greater number of active sites. More importantly, much Ni(III) active species (NiOOH) in the ultrathin nanosheets are formed by the exfoliation process, which play an authentic catalytic role in the ethanol oxidation reaction (EOR). The presence of NiOOH remarkably improves the reactivity and electrical conductivity of LDH nanosheets. These synergistic effects lead to strikingly more than 30 times enhanced EOR activity of NiAl-LDH-NSs compared to bulk NiAl-LDHs. The obtained electrocatalytic activity is also much better than those of most Ni- and LDH-based EOR catalysts reported to date. In addition, the ultrathin NiAl-LDH-NS electrocatalyst also exhibits good long-term stability (maintain 81.8% of the original value after 10000 s). This study not only provides a highly competitive EOR catalyst, but also opens new avenues toward the design of highly efficient electrode materials that have various potential applications in supercapacitor, Ni-MH battery and other electrocatalytic systems.