The complex interplay between the electron and lattice degrees of freedom produces multiple nearly degenerate electronic states in correlated electron materials. The competition between these degenerate electronic states largely determines the functionalities of the system, but the invoked mechanism remains in debate. By imaging phase domains with electron microscopy and interrogating individual domains in situ via electron transport spectroscopy in double-layered Sr 3 ðRu 1−x Mn x Þ 2 O 7 (x ¼ 0 and 0.2), we show in realspace that the microscopic phase competition and the Mott-type metal-insulator transition are extremely sensitive to applied mechanical stress. The revealed dynamic phase evolution with applied stress provides the first direct evidence for the important role of strain effect in both phase separation and Mott metal-insulator transition due to strong electron-lattice coupling in correlated systems.phase separation | electron microscopy | electron transport | scanning tunneling microscopy | strongly correlated materials I t is becoming increasingly clear that the exotic properties displayed by complex materials such as high-T c superconductivity in cuprates, "colossal" magnetoresistance (CMR) in manganites, and heavy-fermion behavior in f -electron compounds are intimately related to the coexistence of competing nearly degenerate states which couple with active degrees of freedom-charge, lattice, orbital, and spin states (1). The striking phenomena associated with these materials are due in large part to spatial electronic inhomogeneities that can be manifested in electronic phase fluctuations and phase separation (PS) (1-4). While electronic phase fluctuations are difficult to probe due to their dynamic nature, electronic PS and domain percolation have indeed been observed as a function of temperature and magnetic field in manganites, which have led to a breakthrough in understanding the CMR effect (5, 6). Although it has been suggested (7), the interplay between phase separations and mechanical strain has not been directly observed.Particularly, in d-electron systems where the on-site electronelectron Coulomb repulsion energy U is comparable to the tunneling electron hopping amplitude t or the bandwidth W , a Mott-type metal-insulator transition (MIT) can occur. The ground state of a Mott insulator is usually antiferromagnetic in nature, but can be modified by either charge doping (the band filling) or crystal engineering (the bandwidth control) (1). Near the Mott MIT boundary, competition between different ground states may lead to electronic PS. Various spectroscopic measurements have revealed the competing states and the associated electronic inhomogeneities (8-10), however, the interplay between bandwidth control and electronic PS near the Mott MIT is still unresolved (1,11,12).The correlated electron material studied here is Mn-doped Sr 3 ðRu 1−x Mn x Þ 2 O 7 , which belongs to the Ruddlesden-Popper series with a stacking of two layers of corner-sharing RuO 6 octahedra separated by cation ox...