Hardness-increasing, coherent, chromiuin-nitride particles of submicroscopic size develop from chromium initially dissolved in the ferritic matrix of FeCr and FeCrC alloys. Transformation of existing chromium-carbide particles leads to coarse, incoherent, chromium-nitride particles and precipitation of cementite at grain boundaries. Due to the long-range strain fields surrounding the coherent precipitates, the ferritic matrix can be supersaturated with nitrogen. The tendency of the case, as a whole, toward volume expansion leads to development of compressive residual surface macrostress. The misfit between secondphase particles and the matrix induces residual microstresses. At latter stages of nitriding discontinuous precipitation, loss of excess nitrogen leads to void development and the relaxation of compressive residual surface macrostress.