To explore the mechanisms controlling residual stress in thin films, we have measured the stress evolution during electrodeposition of Ni on lithographically patterned substrates with different pattern spacings and growth rates. Studying films with a controlled island geometry allows us to relate the stress (measured using wafer curvature) to the evolution of the morphology. We analyze the measurements with a model that focuses on the stress that develops where adjacent islands grow together to form new elements of grain boundary. Residual stress in polycrystalline thin films is a persistent problem, since it can significantly reduce film performance or lead to failure [1]. A deeper understanding would enable it to be predicted and controlled. Numerous studies have shown how the stress evolution depends on the material, processing conditions and evolving microstructure (many studies are reviewed in [2,3,4]). Films with low atomic mobility tend to grow in a state of tensile stress while films with higher mobility are compressive. Similarly, raising the growth temperature [5] or decreasing the growth rate [6] can change the stress from tensile to compressive. During growth, the stress goes through multiple states that correspond with the evolving microstructure, i.e., from isolated nuclei (low or compressive stress) through island coalescence (tensile stress) to a continuous film (steady-state stress that depends on growth rate) [7]. Various mechanisms have been proposed to explain different aspects of the stress evolution. Compressive stress in the nucleation stage has been attributed to lattice compression induced by the surface stress [8]. Hoffman [9] proposed that the tensile stress arises due to attractive forces between islands when the grain boundary forms, similar to the reason for cracks closing [10]. The origin of the post-coalescence compressive stress is more controversial, with various groups attributing it to: adatoms on