In grain-boundary strengthening, the grain boundaries act as pinning points impeding further dislocation propagation. Since the lattice structure of adjacent grains differs in orientation, it requires more energy for a dislocation to change directions and move into the adjacent grain. The grain boundary is also much more disordered than inside the grain, which also prevents the dislocations from moving in a continuous slip plane. Impeding this dislocation movement will hinder the onset of plasticity and hence increase the yield strength of the material.
Under an applied stress, existing dislocations and dislocations generated by Frank–Read sources will move through a crystalline lattice until encountering a grain boundary, where the large atomic mismatch between different grains creates a repulsive stress field to oppose continued dislocation motion. As more dislocations propagate to this boundary, dislocation pile up occurs as a cluster of dislocations are unable to move past the boundary. As dislocations generate repulsive stress fields, each successive dislocation will apply a repulsive force to the dislocation incident with the grain boundary. These repulsive forces act as a driving force to reduce the energetic barrier for diffusion across the boundary, such that additional pile up causes dislocation diffusion across the grain boundary, allowing further deformation in the material. Decreasing grain size decreases the amount of possible pile up at the boundary, increasing the amount of applied stress necessary to move a dislocation across a grain boundary. The higher the applied stress needed to move the dislocation, the higher the yield strength. Thus, there is then an inverse relationship between grain size and yield strength, as demonstrated by the Hall-Petch equation. However, when there is a large direction change in the orientation of the two adjacent grains, the dislocation may not necessarily move from one grain to the other but instead create a new source of dislocation in the adjacent grain. The theory remains the same that more grain boundaries create more opposition to dislocation movement and in turn strengthens the material.
Obviously, there is a limit to this mode of strengthening, as infinitely strong materials do not exist. Grain sizes can range from about  (large grains) to  (small grains). Lower than this, the size of dislocations begins to approach the size of the grains. At a grain size of about , only one or two dislocations can fit inside a grain (see Figure 1 above). This scheme prohibits dislocation pile-up and instead results in grain boundary diffusion. The lattice resolves the applied stress by grain boundary sliding, resulting in a decrease in the material's yield strength.
To understand the mechanism of grain boundary strengthening one must understand the nature of dislocation-dislocation interactions. Dislocations create a stress field around them given by:
where G is the material's shear modulus, b is the Burgers vector, and r is the distance from the dislocation. If the dislocations are in the right alignment with respect to each other, the local stress fields they create will repel each other. This helps dislocation movement along grains and across grain boundaries. Hence, the more dislocations are present in a grain, the greater the stress field felt by a dislocation near a grain boundary:
Interphase boundaries can also contribute to grain boundary strengthening, particularly in composite materials and precipitation-hardened alloys. Coherent IPBs, in particular, can provide additional barriers to dislocation motion, similar to grain boundaries. In contrast, non-coherent IPBs and partially coherent IPBs can act as sources of dislocations, which can lead to localized deformation and affect the mechanical properties of the material.