\u3cp\u3eThe micromechanical deformation mechanisms of sub-μm thermoplastic vulcanizates (TPVs) based on poly(ϵ-caprolactone) (PCL) and cross-linked methacrylate rubbers were studied by time-resolved small-angle X-ray scattering (SAXS) and wide-angle X-ray diffraction (WAXD) measurements in order to better understand the underlying deformation mechanisms responsible for the high elongation at break and good elastic recovery of sub-μm TPVs. It is demonstrated that, in contrast to neat PCL, the interlamellar void formation in the PCL matrix and subsequent coalescence of voids is suppressed by the presence of the rubber (nano)particles in these TPVs. The deformation of the TPVs under tensile conditions is dominated by yielding of the PCL matri...