Using first-principles fully kinetic simulations with a Fokker-Planck collision operator, it is demon strated that Sweet-Parker reco=ection layers are unstable to a chain of plasmoids (secondary is lands) for Lundquist numbers beyond S ;C; 1000. The instability is increasingly violent at higher Lundquist number, both in terms of the number of plasmoids produced and the super-Alfvenic growth rate. A dramatic enhancement in the reconnect ion rate is observed when the half-thickness of the current sheet between two plasmoids approaches the ion inertial length. During this transi tion, the reconnection electric field rapidly exceeds the runaway limit, resulting in the formation of electron-scale current layers that are unstable to the continual formation of new plasmoids.PACS numbers: 52.35. Vd, 52.35.Py, The conversion of magnetic energy into kinetic energy through the process of magnetic reconnect ion remains one of the most challenging and far reaching problems in plasma physics. One key issue is the scaling of the recon nection dynamics for applications where the system size is vastly larger than the kinetic scales. The magnetohy drodynamics (MHD) model should provide an accurate description of collisional reconnect ion where the resis tive layers are larger than the ion kinetic scale. tween islands approach the ion kinetic scale. This regime is typically referred to as kinetic or fast reconnection since a variety of two-fluid and kinetic models predict rates that are weakly dependent on the system size and dis sipation mechanism [6,7] (the precise scalings are still a subject of controversy [8,9]). In neutral sheet geom etry, both two-fluid simulations [10,11] and theory [12J predict an abrupt transition from the collisional to the kinetic regime when 8 sp ::; d i where d i is the ion inertial length. In this geometry, d i is comparable to the ion gy roradius, and in the kinetic regime d i is also compa.rable to the ion crossing orbit scale.Recently, this transition between collisional and kinetic reconnection was proposed as the central mechanism in regulating coronal heating [13-15J. However, these es timates were based on the assumption of a stable SP layer within the collisional regime. To properly describe the dynamics at high Lundquist number, it is crucial to consider how plasmoid formation ma.y influence the tran sition. To address this problem, this work employs fully kinetic particle-in-cell (PIC) simulations with a Monte Carlo treatment [16] of the Fokker-Planck collision op erator. For Lundquist numbers where the SP layers are stable 5 ;s 1000, this powerful first-principles approach has demonstrated a clear transition between the colli sional and kinetic regimes near the expected thresholdHere we demonstrate that SP layers are in creasingly unstable to plasmoid formation in large-scale systems. The observed growth rate is super-Alfvenic, al lowing the islands to grow to large amplitude before they are convected downstream. A dramatic enhancement in the reconnection rate is observed when the current...