Internal friction in oxide thin films imposes a critical limitation to the sensitivity and stability of the ultrahigh finesse optical cavities for gravitational wave detectors. Strategies like doping or creating nanolaminates (NL) are sought to introduce structural modifications that reduce internal friction. This work describes an investigation of the morphological changes SiO₂/Ta₂O₅ and TiO₂/Ta₂O₅ nanolaminates undergo with annealing and their impact on room-temperature internal friction. It is demonstrated that thermal treatment results in a reduction of internal friction in both nanolaminates but through different pathways. In the SiO₂/Ta₂O₅ nanolaminate, the layers of which remain intact after annealing, the total reduction in internal friction follows the reduction in the composing SiO₂ and Ta₂O₅ layers. In contrast, interdiffusion initiated by annealing at the interface in the TiO₂/Ta₂O₅ nanolaminate leads to the formation of a mixed phase. It is the interfacial reaction upon annealing that dictates the more significant reduction in internal friction to ∼2.6 × 10⁻⁴, a value lower than any other Ta₂O₅ mixture coating with similar cation concentration