The mechanical response of polycrystalline materials, particularly under shock loading, is of significant interest in a variety of munitions and industrial applications. Homogeneous continuum models have been developed to describe material response, including Equation of State, strength, and reactive burn models. These models provide good estimates of bulk material response. However, there is little connection to underlying physics and, consequently, they cannot be applied far from their calibrated regime with confidence. Both explosives and metals have important structure at the (energetic or single crystal) grain scale. The anisotropic properties of the individual grains and the presence of interfaces result in the localization of energy during deformation. In explosives energy localization can lead to initiation under weak shock loading, and in metals to material ejecta under strong shock loading. To develop accurate, quantitative and predictive models it is imperative to develop a sound physical understanding of the grain‐scale material response.Numerical simulations are performed to gain insight into grain‐scale material response. The Generalized Interpolation Material Point Method family of numerical algorithms, selected for their robust treatment of large deformation problems and convenient framework for implementing material interface models, are reviewed. A three‐dimensional simulation of wave propagation through a granular material indicates the scale and complexity of a representative grain‐scale computation. Verification and validation calculations on model bimaterial systems indicate the minimum numerical algorithm complexity required for accurate simulation of wave propagation across material interfaces and demonstrate the importance of interfacial decohesion. Preliminary results are presented which predict energy localization at the grain boundary in a metallic bicrystal. © 2004 American Institute of Physics