A new class of materials with ultra small grain size has recently been synthesized by combining the methods of inert gas condensation of metal vapors and in situ powder compaction. These ‘nanocrystalline’ materials, with grain sizes of 5-10 nm, can have over 30% of their atoms lying in the highly disordered interfaces or grain boundaries. Because of their unique atomic structure, nanocrystalline materials often have properties far different from their bulk counterparts. In addition, kinetic processes can be rapidly accelerated due to the short diffusion distances between grains. In this review, we will report on the thermodynamic properties and reaction kinetics of nanocrystalline metals and on such kinetic properties as sintering and grain growth in nanocrystalline ceramics.