A detailed study was conducted on localized oxidation on Type 321 stainless steel (321ss) using synchrotron x-ray nanobeam analysis along with Raman microscopy. The results showed the presence of metallic nanonetworks in the oxide scales, which plays an important role in the continued oxidation of the alloy at 750°C. A mechanism is proposed to explain the rapid oxidation of 321ss in complex gaseous environments at elevated temperature. Neutral metal atoms could diffuse outward, and carbon atoms could diffuse inward through the metallic nanonetworks in oxide layers. Alternately, diffusion tunnels can dramatically affect the phase composition of the oxide scales. Since the diffusion rate of neutral metal and carbon atoms through the metallic nanonetworks can be much faster than the diffusion of cations through Cr 2 O 3 , the metallic nanonetwork provides a path through the protective Cr 2 O 3 layer for the rapid outward diffusion of metallic chromium and iron atoms to the nonprotective spinel layer. This diffusion process affects the solidstate reaction near the alloy-oxide boundary, and a dense Cr 2 O 3 protective layer does not form. The classic stable structure of the oxide scales, with a dense Cr 2 O 3 layer at the bottom, is damaged by the rapid diffusion through the tunnel at the reaction front, resulting in locally accelerated oxidation. This process can subsequently lead to ''breakaway'' oxidation and catastrophic failure of the alloy.