Using atomic force microscopy and spot-profile analyzing low energy electron diffraction, we have observed the existence of a striking faceting instability in Al(110) homoepitaxy, characterized by the formation of nanocrystals with well-defined facets. These hut-shaped nanocrystals are over tenfold higher than the total film coverage, and coexist in a bimodal growth mode with much shallower and more populous surface mounds. We further use density functional theory calculations to elucidate the microscopic origin of the faceting instability, induced by surprisingly low activation barriers for adatom ascent at step edges and island corners.