The mechanism of the formation and growth of phase-separated domains in mixed arachidic acid (C19H39COOH) (AA) and perfluorotetradecanoic acid (C13F27COOH) (PA) monolayer films was investigated through a combination of surface pressure-area isotherm measurements and atomic force microscope (AFM) imaging. In the mixed AA-PA monolayer system, distinct discontinuous domains consisting primarily of AA form spontaneously in a surrounding continuous matrix enriched in PA. By varying the monolayer deposition conditions, including temperature, surface pressure, and the mechanical agitation of sample solutions, it was determined that phase-separated nuclei are formed initially in the bulk sample solution and further growth of domains proceeds on the subphase surface via an Ostwald ripening process involving the diffusion of AA from the matrix to the discontinuous domains. In addition, selective dissolution of the arachidic acid followed by in situ AFM imaging has allowed the visualization of the fusion of AA to the phase-separated domains and has highlighted some unusual pattern formation that occurs at low subphase temperatures.