Nanocrystals play a key role in the modern energy, catalysis, semiconductor, and biology industries due to their unique structures and performances. However, controllable fabrication of ideal nanocrystals with the desired structures and properties is still challenging, which needs a deep understanding of their nucleation and growth process. Here, the research on nucleation and growth of nanocrystals studied by in situ transmission electron microscopy (TEM) is reviewed, mainly focusing on the atomic migration dynamics, interface evolution, and structure transformation. In addition, the challenges in the study of nanocrystal growth by TEM are discussed and the perspective on the future development of advanced in situ TEM techniques is provided. It is hoped that the review can give a deep insight into the nanocrystal nucleation and growth process, and further contribute to the rational design and precise fabrication of high‐performance functional nanocrystals.