Abstract Pure magnetite experiences a first-order phase transition (the Verwey transition) near 120–125 K wherein the mineral’s symmetry changes from cubic to monoclinic. This transformation results in the formation of fine-scale crystallographic twins and is accompanied by a profound change in magnetic properties. The Verwey transition is critical to a variety of applications in environmental magnetism and paleomagnetism because its expression is diagnostic for the presence of stoichiometric (or nearly stoichiometric) magnetite and cycling through the Verwey transition tends to remove the majority of multidomain magnetic remanence. Internal and external stresses demonstrably affect the onset of the Verwey transition. Dislocations create localized internal stress fields and have been cited as a possible source of an altered Verwey transition in deformed samples. To further investigate this behavior, a laboratory-deformed magnetite sample was examined inside a transmission electron microscope as it was cooled through the Verwey transition. Operating the microscope in the Fresnel mode of Lorentz microscopy enabled imaging of the interactions between dislocations, magnetic domain walls, and low-temperature crystallographic twin formation during the phase transition. To relate the observed changes to more readily measurable bulk sample magnetic behavior, low-temperature magnetic measurements were also taken using SQUID magnetometry. This study allows us, for the first time, to observe the Verwey transition in a defect-rich area. Dislocations, and their associated stress fields, impede the development of monoclinic magnetite twin structures during the phase transition and increase the remanence of a magnetite sample after cooling and warming through the Verwey transition.