The competition between craze formation and shear band formation at small glass beads embedded in matrices of glassy polymers has been investigated. This has been done by performing constant strain rate tensile tests over a wide range of strain rates and temperatures, and examining the deformation pattern formed at the beads with a light microscope. The glassy polymers under investigation were polystyrene, polycarbonate, and two types of styrene-acrylonitrile copolymer. It was found that besides matrix properties, strain rate and temperature, the degree of interfacial adhesion between the glass beads and the matrix also has a profound effect on the competition between craze and shear band formation: at excellently adhering beads craze formation is favoured, whereas at poorly adhering beads shear band formation is favoured. This effect is caused by the difference in local stress situation, craze formation being favoured under a triaxial stress state and shear band formation under a biaxial stress state. The kinetics of crazing and shear deformation have also been studied, using a simple model and Eyring's rate theory of plastic deformation. The results suggest that chain scission may be the ratedetermining step in crazing but not in shear deformation.