Semisolid tensile testing combined with X-ray microtomography (XMT) was used to characterize the development of internal damage as a function of strain in an aluminum-magnesium alloy, AA5182. Novel techniques were developed to allow the quantification of both the size evolution and orientation of the damage to determine mechanisms controlling the early stage growth and localization. During the initial stages of semisolid deformation, it was observed that strain was accommodated by both the growth of as-cast porosity and the detection of new damage-based voids. As the volume fraction of damage increases, the growth of voids occurs in an orientation perpendicular to the loading direction, both through expansion within the grain boundary liquid and void coalescence. The damage then localizes, causing failure.