Deformation behavior in the vicinity of grain boundary in Fe-0.4wt%C tempered martensitic steel were studied through in-situ nanoindentation in a TEM. Two types of boundaries were imaged in the dislocated martensitic structure: a low-angle lath boundary and a high-angle block boundary. In the case of a low-angle grain boundary, the dislocations induced by the indenter piled up against the boundary. As the indenter penetrated further, a critical stress appears to have been reached and a high density of dislocations was suddenly emitted on the far side of the grain boundary into the adjacent grain. In the case of the high-angle grain boundary, the numerous dislocations that were produced by the indentation were simply absorbed into the boundary, with no indication of pile-up or the transmission of strain.