Plastic deformation in coarse-grained metals is governed by dislocation-mediated processes. These processes lead to the accumulation of a residual dislocation network, producing inhomogeneous strain and an irreversible broadening of the Bragg peaks in x-ray diffraction. We show that during plastic deformation of electrodeposited nanocrystalline nickel, the peak broadening is reversible upon unloading; hence, the deformation process does not build up a residual dislocation network. The results were obtained during in situ peak profile analysis using the Swiss Light Source. This in situ technique, based on well-known peak profile analysis methods, can be used to address the relationship between microstructure and mechanical properties in nanostructured materials.