A sphere dislocation model is developed to describe the effect of dislocation on diffusion-induced stress in battery electrodes. We follow the conventional assumption that the diffusion-induced stresses are symmetrical during intercalation and de-intercalation. The results show that dislocation-induced stress can lower the tensile stress, convert the state of stress from tensile to compressive, and the tendency to fracture can be reduced with decreasing the particle radius down to the nanometer range. We conclude that dislocation mechanics are beneficial to avoid the formation of cracks during cycling. Here, we suggest a possibility of developing a new strategy to optimize the diffusion-induced stresses and prolong battery life.