Experimental studies conducted in conjunction with a numerical analysis of strain‐rate gradients have established the origin of the damage process that occurs upon the densification of powders containing nonsintering inclusions and reinforcements. The underlying phenomenon is the development of localized compressive strains in the porous matrix, both around high‐aspect ratio reinforcements and between closely spaced reinforcements. These regions of compression densify first and then support grain growth. This process produces nondeformable networks that constrain the shrinkage of the adjacent, porous matrix. The constraint causes desintering and cracklike void formation in the lowdensity regions. The variables shown to be of importance are the volume fraction and aspect ratio of the reinforcements. The process is shown to be sensitive to the green density, such that a high initial density reduces initial damage and lowers the differential in densificat