Ni/YSZ porous composite is used widely as anode for solid oxide fuel cells. In this study, neutron diffraction patterns were recorded in-situ while a bulk porous Ni-NiO-YSZ anode was loaded under uniaxial compression. Single peak refinement was used to calculate the lattice strains of each phase in the composite, and the local stress state of each phase was derived from the measured lattice strains and the corresponding diffraction elastic constants. An internal triaxial stress state was observed to develop in the bulk of the specimen under plastic deformation, specifically in the Ni phase. Meanwhile, the NiO and YSZ phases are deforming elastically even in the macroscopically plastic regime of deformation. The von Mises equivalent stress was used to quantify the phase stress evolution. A significant stress concentration induced by the presence of pores becomes manifest in all three phase components. The reduction of stress concentration factor in Ni above the yield point of the composite can be attributed to a gradual change of the grains-pores morphology during the plastic deformation.