Nanoindenter techniques have been used to investigate the mechanical properties of Ag-A1 2 0 3 and Fe-SiO 2 granular metal films. A discontinuity in the rate of change of hardness as a function of metal volume fraction p was observed. The discontinuity occurs at the percolation threshold Pc of the metal, and appears to result from a change in the deformation mechanism at pc. A large peak in compliance (inverse modulus) as measured during indentation unloading was observed in the Ag-A120 3 films near Pc, but was not observed for the Fe-SiO2 films. The compliance peak displayed by Ag-A1 2 0 3 is believed to result from debonding at the metal-ceramic interface and subsequent interfacial sliding, and is not an intrinsic materials property.