Although theoretical studies and experimental research have shown outstanding mechanical properties of graphene, its brittleness and low toughness restrict its widespread industrial use. Here, we conducted a study to examine the impact of encapsulated Ag nanoparticles on the mechanical properties of graphene through in situ nanomechanical testing in an aberration -corrected transmission electron microscope (TEM). The presence of Ag nanoparticles was found to decrease crack propagation speed, enabling the TEM observation of crack deflection around the nanoparticles at nanoscale, as well as real-time measurement of the concomitant increase in stress. Using our nanomechanical testing data, we were able to quantitatively estimate the stress intensity factor, which serves as a measurement of fracture toughness for graphene, and then compared our results with previously reported values. We further discuss the role of nanoparticles in the propagation of cracks and their potential to enhance the toughness of materials. These findings have practical implications for the development of highperformance graphene composite materials.