Heterostructures composed of dissimilar two-dimensional nanomaterials can have nontrivial physical and mechanical properties which are potentially useful in many applications. Interestingly, in some cases, it is possible to create heterostructures composed of weakly and strongly stretched domains with the same chemical composition, as has been demonstrated for some polymer chains, DNA, and intermetallic nanowires supporting this effect of two-phase stretching. These materials, at relatively strong tension forces, split into domains with smaller and larger tensile strains. Within this region, average strain increases at constant tensile force due to the growth of the domain with the larger strain, at the expense of the domain with smaller strain. Here, the two-phase stretching phenomenon is described for graphene nanoribbons with the help of molecular dynamics simulations. This unprecedented feature of graphene that is revealed in our study is related to the peculiarities of nucleation and the motion of the domain walls separating the domains of different elastic strain. It turns out that the loading–unloading curves exhibit a hysteresis-like behavior due to the energy dissipation during the domain wall nucleation and motion. Here, we put forward the idea of implementing graphene nanoribbons as elastic dampers, efficiently converting mechanical strain energy into heat during cyclic loading–unloading through elastic extension where domains with larger and smaller strains coexist. Furthermore, in the regime of two-phase stretching, graphene nanoribbon is a heterostructure for which the fraction of domains with larger and smaller strain, and consequently its physical and mechanical properties, can be tuned in a controllable manner by applying elastic strain and/or heat.