A phase-field model is described for predicting the diffusional phase transformation process in elastically inhomogeneous polycrystals. The elastic interactions are incorporated by solving the mechanical equilibrium equation using the Fourier-spectral iterative-perturbation scheme taking into account elastic modulus inhomogeneity. A number of examples are presented, including grain boundary segregation, precipitation of second-phase particles in a polycrystal, and interaction between segregation at a grain boundary and coherent precipitates inside grains. It is shown that the local pressure distribution due to coherent precipitates leads to highly inhomogeneous solute distribution along grain boundaries. © (2011) Trans Tech Publications.