Plastic deformation of peridotites in the mantle involves large strains. Orthorhombic olivine does not have enough slip systems to satisfy the von Mises criterion, leading to strong hardening when polycrystals are deformed at rather low temperatures (i.e., below 1200 °C). In this study, we focused on the recovery mechanisms involving grain boundaries and recrystallization. We investigated forsterite samples deformed at large strains at 1100 °C. The deformed microstructures were characterized by transmission electron microscopy using orientation mapping techniques (ACOM-TEM). With this technique, we increased the spatial resolution of characterization compared to standard electron backscatter diffraction (EBSD) maps to further decipher the microstructures at nanoscale. After a plastic strain of 25%, we found pervasive evidence for serrated grain and subgrain boundaries. We interpreted these microstructural features as evidence of occurrences of grain boundary migration mechanisms. Evaluating the driving forces for grain/subgrain boundary motion, we found that the surface tension driving forces were often greater than the strain energy driving force. At larger strains (40%), we found pervasive evidence for discontinuous dynamic recrystallization (dDRX), with nucleation of new grains at grain boundaries. The observations reveal that subgrain migration and grain boundary bulging contribute to the nucleation of new grains. These mechanisms are probably critical to allow peridotitic rocks to achieve large strains under a steady-state regime in the lithospheric mantle.