In interfacial reactions, a short-circuit diffusion along grain boundaries or interfaces can be accompanied by intermetallic compound formation. The compound penetrates the grain boundaries or the interfaces. This is a generic reliability issue for layered thin film structures because it causes a decrease in adhesion strength of the thin films. We have modified Fisher's grain boundary diffusion model to include this reactive kinetic process, and an analytical solution was obtained. A t1/4 dependence of penetration is found, the same as Fisher's model. The important kinetic parameters in the solutions are a diffusion coefficient along the short-circuit path, an intrinsic interdiffusion coefficient in the compound, and a partition coefficient. A comparison between the calculated and measured data from the lateral penetration of eutectic SnPb solder along the interface between electroless Ni and oxysilicon nitride dielectric, accompanied by Ni3Sn4 compound formation, is given.