Measurements have been made of the strain response parallel and perpendicular to an applied stress in uniaxial tensile specimens of MONEL-400. The diffraction elastic constants are in close agreement with the Kröner model. Beyond the yield point, different crystallographic orientations respond quite differently to the applied stress and, upon unloading, residual intergranular strains are generated which are tensile for some orientations and compressive for others. A simple theory based on the Taylor-Bishop-Hill (TBH) model gives a good qualitative description of the effects.T.M. HOLDEN, formerly Senior Research Officer with AECL, Chalk