A novel, in situ transmission electron microcopy technique for the direct observation of deformation and fracture in multilayered materials oriented in cross-section is reviewed. Cross-sectional tensile specimens were prepared from thick, free-standing, Cu/Zr and Al/Ti multilayered foils. These tensile specimens contain a micro-gauge section, thus predetermining the location at which dislocation activity and crack nucleation and growth can be observed at high magnifications in the transmission electron microscope. The results from these experiments are unique and cannot be realized by any other technique. These observations will aid us in our understanding of the micromechanisms of deformation and fracture in multilayered materials.