Transient stress relaxation around a spherical inclusion caused by the combination of interfacial diffusion and sliding is examined. The inclusion is rigid while the matrix is elastic. It is assumed that only the matrix atoms can be relocated on the interface. With the help of Papkovitch-Neuber's displacement potentials, the time-dependent stress distribution in the matrix is obtained analytically. It is found that significant stress relaxation occurs only in the region very close to the inclusion. In addition, the radial stress component is relaxed non-monotonically. A brief explanation for this unexpected phenomenon is also given. (C) 2002 Elsevier Science B.V. All rights reserved.