A phase separation of fluidized granular matter is presented. Molecular dynamics simulations of a system of grains in two spatial dimensions, with a vibrating wall and without gravity, exhibit the appearance, coalescence, and disappearance of bubbles. By identifying the mechanism responsible for the phase separation, we show that the phenomenon is analogous to the spinodal decomposition of the gas-liquid transition of the van der Waals model. We have deduced a macroscopic model for the onset of phase separation which agrees quite well with molecular dynamics simulations.