The Walls Boundary Fault in Shetland, Scotland, formed during the Ordovician–Devonian Caledonian orogeny and underwent dextral reactivation in the Late Carboniferous. In a well-exposed section at Ollaberry, westerly verging, gently plunging regional folds in the Neoproterozoic Queyfirth Group on the western side of the Walls Boundary Fault are overprinted by faults and steeply plunging Z-shaped brittle–ductile folds that indicate contemporaneous right-lateral and top-to-the-west reverse displacement. East of the Walls Boundary Fault, the Early Silurian Graven granodiorite complex exhibits fault-parallel fractures with Riedel, P and conjugate shears indicating north–south-striking dextral deformation and an additional contemporaneous component of east–west shortening. In the Queyfirth Group, the structures are arranged in geometrically and kinematically distinct fault-bounded domains that are interpreted to result from two superimposed tectonic events, the youngest of which displays evidence for bulk dextral transpressional strain partitioning into end-member wrench and contractional strain domains. During dextral transpressional deformation, strain was focused into pelite horizons and favourably aligned pre-existing structures, leaving relicts of older deformation in more competent lithologies. This study highlights the importance of pre-existing structures and lithological heterogeneity during reactivation and suggests the development of a regional transpressional tectonic environment during the Late Carboniferous on the Shetland Platform.