A theoretical model is suggested which describes the transformations of grain-boundary dislocation walls and their influence on diffusion processes in nanocrystalline materials fabricated under highly non-equilibrium conditions. It is shown that the decay of boundary dislocation walls of finite extent, occurring via the climb of boundary dislocations and the corresponding emission of vacancies, is capable of highly enhancing the grain-boundary diffusion in nanocrystalline materials. The enhanced diffusion, in turn, strongly affects the deformation behaviour of nanocrystalline materials. In the case of (...) nanocrystalline films deposited on to substrates, the effects of misfit stresses on the transformations of boundary dislocation walls and the diffusion are analysed. It is demonstrated that the mean diffusion coefficient in a nanocrystalline film may increase by approximately several orders of magnitude owing to misfit stresses. (shrink)