Percutaneous thermal ablation is a validated treatment option for small hepatocellular carcinoma (HCC). Steatotic HCC can be reliably detected by magnetic resonance imaging. To determine the clinical relevance of this radiological variant, we included 235 patients (cirrhosis in 92.3%, classified Child-Pugh A in 97%) from a prospective database on percutaneous thermal ablation for <3 cm HCC. Among these patients, 52 (22.1%) had at least one steatotic HCC nodule. Nonalcoholic steatohepatitis was more frequent in patients with than without steatotic HCC ( = 0.057), whereas body mass index, diabetes mellitus, liver steatosis, and liver fat content did not differ between groups. Liver disease was less advanced in patients with than without steatotic HCC: lower total bilirubin ( 2.1 µmol/L;  = 0.035), higher albumin (+0.8 g/L;  = 0.035), and lower Model for End-Stage Liver Disease score (-0.8;  = 0.014). Tumor phenotype was less aggressive in patients with steatotic HCC: lower alpha-fetoprotein (AFP) concentration ( = 0.019), less frequent AFP > 100 ng/mL ( = 0.045), and multifocality ( = 0.015). During the follow-up (median: 28.3 months), overall mortality (3.8% vs. 23.5%;  = 0.001) and HCC-specific mortality (0.0% vs. 14.2%;  = 0.002) rates were lower in patients with steatotic HCC. Early (<2 years) recurrence was also less frequent (32.7% vs. 49.2%;  = 0.041). The mean time to intrahepatic distant recurrence (16.4 vs. 9 months,  = 0.006) and the median time to recurrence and recurrence-free survival (32.4 vs. 18.6 months,  = 0.024 and 30.4 vs. 16.4 months,  = 0.018) were longer in patients with steatotic versus nonsteatotic HCC. The 3-year overall survival was 94.4% and 70.9% in steatotic and nonsteatotic HCC ( = 0.008). In multivariate analysis, steatotic HCC (hazard ratio = 0.12;  = 0.039) and AFP (HR=1.002;  < 0.001) independently predicted overall survival. Small steatotic HCC detected by magnetic resonance imaging is associated with a less aggressive tumor phenotype. In patients with such radiological variant, percutaneous thermal ablation results in improved outcome.