Ion implantation of O and Al were used to form nanometer-size precipitates of NiO or Al(sub 2)O(sub 3) in the near-surface of Ni. The yield strengths of the treated layers were determined by nanoindentation testing in conjunction with finite-element modeling. The strengths range up to (approximately)5 GPa, substantially above values for hard bearing steels. These results agree quantitatively with predictions of dispersion-hardening theory based on the precipitate microstructures observed by transmission electron microscopy. Such surface hardening by ion implantation may be beneficial for Ni components in micro-electromechanical systems.