Enhanced room temperature toughness of the Zr50Pd35Ru15B2 phase alloy was found to be a result of the activation of an additional deformation mode besides the b=[001] dislocation slip mode - {114}-type mechanical twinning. The twinning is a true one, i.e. there is no change in the ordered crystal structure. Another additional mode of plastic deformation, expected for more Pd rich alloys, is the formation of stress-induced martensite. The martensite was found to have a CrBtype structure.