Nanostructured ferritic alloys are a new class of ultrafine-grained oxide dispersionstrengthened steels that have promising properties for service in extreme environments in future nuclear reactors. This is due to the remarkable stability of their complex microstructures containing numerous Y-Ti-O nanoclusters within grains and along grain boundaries. Although nanoclusters account primarily for the exceptional resistance to irradiation damage and high-temperature creep, little is known about the mechanical roles of the polycrystalline grains that constitute the ferritic matrix. Here we report an in situ mesoscale characterization of anisotropic responses of ultrafine ferrite grains to stresses using state-ofthe-art neutron diffraction. We show the experimental determination of single-crystal elastic constants for a 14YWT alloy, and reveal a strong temperature-dependent elastic anisotropy that leads to elastic softening and instability of the ferrite. We also demonstrate, from anisotropy-induced intergranular strains, that a deformation crossover exists from lowtemperature lattice hardening to high-temperature lattice softening in response to extensive plastic deformation.