Abstract: Various modes of transmission electron microscopy including aberration corrected imaging were used in order to unravel the fundamental mechanisms controlling the formation of growth twins and the evolution of twin boundaries under mechanical and hydrogen loading modes in nanocrystalline (nc) palladium thin films. The latter were produced by electron-beam evaporation and sputter deposition and subjected to uniaxial tensile deformation as well as hydriding/dehydriding cycles. The results show that the twins form by dissociation of grain boundaries. The coherency of Σ3{111} coherent twin boundaries considerably decreases with deformation due to dislocation/twin boundary interactions while Σ3{112} incoherent twin boundaries dissociate under hydrogen cycling into two-phase boundaries bounding a new and unstable 9R phase. The effect of these elementary mechanisms on the macroscopic behavior of the palladium films is discussed and compared to recent experimental and simulation works in the literature. The results provide insightful information to guide the production of well-controlled population of growth twins in high stacking fault energy nc metallic thin films. The results also indicate directions for further enhancement of the mechanical properties of palladium films as needed for instance in palladium-based membranes in hydrogen applications.