With over 100 refereed publications and 8 patents in the past 8 years we have made tremendous progress in understanding the properties of a class of layered, hexagonal ternary carbides and nitrides with the general formula: M@subN+1@AX@sub n@ (MAX), where n = 1 to 3, M is an early transition metal, A is an A-group element and X is C or N. The MAX phases combine some of the best attributes of metals and ceramics. Like metals, they are electrically and thermally conductive, readily machinable, not susceptible to thermal shock, plastic at high temperatures, and exceptionally damage tolerant. Like ceramics, some are elastically rigid, lightweight, and maintain their strength at high temperatures. Ti@sub 3@SiC@sub 2@ is also creep, fatigue and oxidation resistant. Furthermore, basal planes of Ti@sub 3@SiC@sub 2@ possess very low friction coefficients (3x10@super -2@) that are quite robust vis-a-vis exposure to the atmosphere. Two characteristics distinguish these phases from other layered solids: i) the metallic-like nature of the bonding, and ii) they deform by a unique combination of kink and shear band formation resulting from the glide of basal-plane dislocations. Polycrystalline Ti@sub 3@SiC@sub 2@ cylinders can be repeatedly compressed at room temperature, up to 1 GPa. The stress-strain curves outline fully reversible, reproducible closed loops whose size and shape depend on grain size, but not strain rate. The energy dissipated per cycle is of the order of 1 MJ/m@super 3@. At the grain level we have shown that it is possible to nanoindent grains of Ti@sub 3@SiC@sub 2@ with up to 10 GPa, dissipate roughly 25 % of the mechanical energy and not be able to find any trace of the indentation. Both phenomena are attributed to the formation and annihilation of incipient kink bands. The technological implications of having these naturally nanolayered materials will be discussed.