To date, many high-performance thermoelectric (TE) materials for power generation have been studied and reported. However, so far they have not been implemented in reliable commercial devices. To bring current achievements into a device for power generation, a full understanding the dynamic behavior of thermoelectric materials under operating conditions is needed. In this work, an in operando study is conducted on the high-performance TE material β-Zn4Sb3 under large temperature gradient and thermal cycling by a new approach using in-situ transmission electron microscopy combined with characterization of the TE properties. We found that after 30 thermal cycles in a low-pressure helium atmosphere the TE performance of β-Zn4Sb3 is maintained with the zT value of 1.4 at 718 K. Nevertheless, under a temperature gradient of 380 K (Thot = 673 K and Tcold = 293 K) operating for only 30 hours, zinc whiskers gradually precipitate on the cold side of the β-Zn4Sb3 leg. The dynamical evolution of Zn in the matrix of β-Zn4Sb3 was found to be the source that leads to a high zT value by lowering of the thermal conductivity and electrical resistivity, but it is also the failure mechanism for the leg under these conditions. The in operando study brings deep insight into the dynamic behavior of Advanced Electronic Materials 2 nanostructured TE materials for tailoring future TE materials and devices with higher efficiency and longer durability.