Semi-solid deformation mechanisms are important in a range of manufacturing and natural phenomena, which range from squeeze casting to magma flows. Using fast synchrotron X-ray tomography and a bespoke precision thermomechanical rig, we performed a four-dimensional (3-D plus time) quantitative investigation of the granular behaviour of equiaxed dendritic three-phase materials. This methodology produced new insights into the formation of damage during the isothermal semi-solid compression (∼30% liquid fraction) of an Al–15wt.%Cu alloy at both a macroscopic and microscopic level. Grain rearrangements, such as translation and rotation, were observed and lead to local dilatancy. The resulting flow of Cu-rich intergranular liquid into the dilated interstices gave rise to a local increase in liquid fraction, followed by rapid void growth above a critical axial strain of −6.4%. The local normal and shear strain distributions were quantified using digital volume correlation, identifying dilatant shear bands. At a microstructural level, the individual grains were also seen to undergo intragranular deformation, leading to bending and fragmentation of dendrites as grains interlock.