We investigate how the statics and dynamics of elastic phase transitions are influenced by defects which locally increase the transition temperature. The theory is developed both for isolated and for a finite concentration of randomly distributed defects. It is based on a one-dimensional Ginzburg-Landau functional with short-range defects, thereby modelling a grain boundary or a thin intermediate layer in the three-dimensional case. Analogously to distortive transitions, we find the phenomenon of local condensation at the defect when the temperature T reaches the “local transition temperature” T1 c. However, the dynamical features concerning the soft acoustic phonons are significantly different. Instead of localized modes, there is a localized quasi-resonant vibrational part in each of the scattering states. When T approaches T1 c the transmission amplitudes of the long-wavelength acoustic phonons vanish and the vibrational part “condenses” at the defect. If a local condensation is forced upon the crystal by application of an external stress, which is removed immediately afterwards, the corresponding deformation decays into a boost of acoustic phonons, the relaxation time diverging in the vicinity of T1 c. The phonon-phonon response function can be calculated analytically. Averaging over the defect positions we obtain the response and correlation functions for a random multi-defect system to first order in the defect concentration n. These display the development of a pronounced central peak when the temperature approaches Tc(n) = Tl c+ 0(n). In contrast to Tl c, however, at Tc(n) a global phase transition induced by the “softening” defects takes place. Below Tc(n) an inhomogeneous order sets in. © 1991, Taylor & Francis Group, LLC. All rights reserved.