in Atomic scale it might act by retarding dislocation movement so atoms or dislocations can not move easily which lead into strengthening of material. in particle scale, it might refer to composite. a composite materials is composed of two or three different materials which do not undergo reaction when they come together. so there is a matrix and reinforcing agent. the materials which are dispersed in matrix act as strengthening agents.
... if the core is stronger and stiffer than the matrix
... if there is matrix constraint as a result (which is likely but not guaranteed).
Reaction to form the bond is still possible and allowable.
No bond = flaw
... and therefore weakening, even with the hardest core.
Dislocations only apply to crystalline materials. "Dispersed" particles must still obey the above requirements. Solid solution effects are out of context, so "atomic scale" only applies to the consequence, not the cause.
In my idea, there can not happen full reaction in composite because if so, then composite loses its nature, reaction can only be superficial and on the surface. or it can also be in grain boundaries.
about the atomic scale i can give you example of a dopant dispersed in a crystalline lattice which increases density of dislocations in which improves the mechanical properties of material.