Crystalline materials undergo heterogeneous deformation upon the application of external load, which results in the development of incompatible elastic strains in the material as soon as the load is removed. The presence of heterogeneous distribution of elastic strains in the absence of any form of external load results in the building up of stresses referred to as residual stresses. The heterogeneity of strain is attributed either to the presence of multiple phases or to the orientation gradients across the sample volume. This paper is an endeavour to model the presence of second phase in a two-dimensional discrete dislocation dynamics framework, which already contains constitutive rules to include three-dimensional mechanisms, such as line tension and dynamic junction formation. The model is used to investigate residual stress development in single crystals subjected to plane strain loading and then subsequently unloaded to study residual stresses. The dislocation accumulation around the second phase and its effect on the mechanical properties is studied. The orientation dependence of residual stresses as a function of the underlying defect substructure has also been explored. A variety of results are obtained. In particular, the development of stresses as a function of underlying defect substructure is also presented and found to depend upon the orientation of the crystal
