We report on etching of polyacrylic acid-stabilised silver nanoparticles in the presence of glutathione (GSH). The initial particles with a radius of 3.2 nm and consisting of ∼8100 silver atoms dissolve in a two-step reaction mechanism while in parallel smaller silver particles with a radius of 0.65 nm and consisting of 60 to 70 silver atoms were formed. The kinetics of the etching of the initial particles, accompanied by formation of smaller silver particles was interpreted based on in situ, time-resolved small-angle X-ray scattering (SAXS) experiments.