In-situ X-ray diffraction (XRD) and transmission electron microscopy (TEM) have been used to investigate many physical science phenomena, ranging from phase transitions, chemical reaction and crystal growth to grain boundary dynamics. A major limitation of in-situ XRD and TEM is a compromise that has to be made between spatial and temporal resolution. Here, we report the development of in-situ X-ray nanodiffraction to measure atomic-resolution diffraction patterns from single grains with up to 5 millisecond temporal resolution, and make the first real-time observation of grain rotation and lattice deformation during photoinduced chemical reactions. The grain rotation and lattice deformation associated with the chemical reactions are quantified to be as fast as 3.25 rad./sec. and as large as 0.5 Angstroms, respectively. The ability to measure atomic-resolution diffraction patterns from individual grains with several millisecond temporal resolution is expected to find broad applications in materials science, physics, chemistry, and nanoscience.