Damage evolution during tensile straining of an AlSi12Ni alloy has been analyzed in situ at synchrotron source using microtomography and in the scanning electron microscope by surface imaging. It is shown that damage development in the analyzed alloy presenting an interconnected network of intermetallic phases is completely different from damage progression previously observed in materials with disperse distribution of particles. In the present material, which is typical for most eutectic structures, damage is dominated by the rupture of the brittle intermetallic phase while void growth is limited by a shielding effect of the intermetallic particles encasing the void. Primary voids exhibit a size close to the thickness of branches of the intermetallic phase. Final failure occurs by void coalescence, but without the formation of secondary voids. Damage analysis from tomographic scans was only possible by applying 3D image correlation to successive reconstructions, which thanks to its sub-voxel resolution, could satisfactorily detect the volume fraction of small-voids inaccessible by conventional thresholding. The presence of many small voids issued from the breakage of the intermetallic phase also was confirmed by scanning electron microscopy imaging performed at higher resolution. © 2019 Acta Materialia Inc.