A unique discontinuous lamellar microstructure of titanium alloys consisting of lamellar colonies at prior β-Ti grain boundaries and internal interwoven α-laths is prepared by a TiH₂-based powder metallurgy method. The α-variants get various crystallographic orientations and become discontinuous during vacuum annealing at 700 °C. Remarkably, nanoscale phase δ-TiH compound layers are generated between α-laths and β-strips, so that dislocations are piled up at the α/δ/β interfaces during tensile deformation. This leads to dislocation slips being confined to individual α-laths, with different <a> slips and particularly pyramidal <c+a> slips being activated. The efficiency of wavy slip is promoted and the work hardening rate is enhanced. Finally, the combined effect of dispersed micro-shear bands and lath distortions is considered contributive for alleviating the stress concentration at grain boundaries, resulting in a high-promising synergy of enhanced ultimate tensile strength of 1080 MPa and good elongation to fracture of 13.6%.