Abstract: Nanoindentation tests performed on nanocrystalline palladium films subjected to hydriding/dehydriding cycles demonstrate a significant softening when compared to the as-received material. The origin of this softening is unraveled by combining in situ TEM nanomechanical testing with automated crystal orientation mapping in TEM and high resolution TEM. The softening is attributed to the presence of a high density of stacking faults and of Shockley partial dislocations after hydrogen loading. The hydrogen induced defects affect the elementary plasticity mechanisms and the mechanical response by acting as preferential sites for twinning/detwinning during deformation. These results are analyzed and compared to previous experimental and simulation works in the literature. This study provides new insights into the effect of hydrogen on the atomistic deformation and cracking mechanisms as well as on the mechanical properties of nanocrystalline thin films and membranes.