Gradient-structured alloys with lamellar microstructures show extraordinary potential in breaking the strength-ductility trade-off dilemma. When partial grain size exceeds the Hall-Petch limit, the deformation mechanism is not fully understood. In this study, the competing relationship between grain boundary (GB) softening and hetero-deformation-induced (HDI) strengthening in laminated nano-grained aluminum was investigated under uniaxial tensile loading. In the soft domains, the high activity of grain boundaries results in pronounced GB softening. However, when the volume fraction of the soft layer exceeds 50 %, the flow stress surpasses the predicted values of the rule of mixtures (ROM), demonstrating a significant HDI strengthening. A detailed analysis of microstructural evolution is conducted, including strain gradients, GB migration, and dislocation distribution. The effects of mechanical incompatibility between soft and hard layers on the distribution of plastic strain and overall material strength are elucidated in gradient structures. The study provides critical theoretical insights into the design and development of high-performance gradient nanocrystalline aluminum alloys, particularly in applications where a balance between strength and ductility is of paramount importance.