Precipitation strengthening has been the basis of physical metallurgy since more than 100 years owing to its excellent strengthening effects. This approach generally employs coherent and nano-sized precipitates, as incoherent precipitates energetically become coarse due to their incompatibility with matrix and provide a negligible strengthening effect or even cause brittleness. Here we propose a shear band-driven dispersion of nano-sized and semicoherent precipitates, which show significant strengthening effects. We add aluminum to a model CoNiV medium-entropy alloy with a face-centered cubic structure to form the L2(1) Heusler phase with an ordered body-centered cubic structure, as predicted by ab initio calculations. Micro-shear bands act as heterogeneous nucleation sites and generate finely dispersed intragranular precipitates with a semicoherent interface, which leads to a remarkable strength-ductility balance. This work suggests that the structurally dissimilar precipitates, which are generally avoided in conventional alloys, can be a useful design concept in developing high-strength ductile structural materials. Precipitation hardening, used as an effective strengthening strategy in various alloy systems, has been usually achieved by coherent precipitates. Here, the authors develop ultrastrong ductile alloys employing structurally dissimilar semicoherent precipitates by shear band-driven precipitation.