Transformation-induced plasticity is a fundamental solution for improving the ductility of bulk metallic glass composites (BMGCs). However, the underlying mechanism remains controversial. Here, by using in situ transmission electron microscopy, we present direct observation of the transformation dynamics from β/ω phase to α’ phase of the crystalline dendrites in a TiZrCuBe BMGC under uniaxial tensile deformation. The transformation redistributes the stress in the adjacent matrix, making interfacial regions potential preferential sites for shear band nucleation. The high density of nucleation sites is believed to promote the formation of shear band networks and enhance the ductility of BMGCs.