Atomistic simulations of uniaxial tensile and compressive straining of three-dimensional nanocrystalline palladium were performed at room temperature and different strain rates. Detailed analysis revealed that initial plastic deformation is due to grain boundary sliding accommodated by localized bending inside the grains and the formation of dislocation embryos. Intergranular cracking in the absence of dislocation activity was found at later stages of tensile straining. During compressive straining the sample shows a plastic response which is brought about mainly by intergranular accommodation processes. The contribution of extended partial dislocations emitted from the grain boundaries as well as full dislocations and twinning at later stages of deformation to the total strain was found to be insignificant.