In recent years, there has been a surge of interest in developing cutting-edge techniques for non-destructively characterizing the mechanical properties of soft materials. Among these approaches, needle-induced cavitation (NIC) has emerged as a promising method for introducing bubbles into the material under investigation. These localized bubbles function as probes, with their internal pressure fluctuations offering insights into the mechanical behavior of the surrounding material. However, this method often relies on a series of assumptions and falls short in delivering detailed insights into in situ material deformation and damage at a fine spatial and temporal resolution. Here, we present a new integrated solution that combines NIC and digital image correlation (DIC). Our approach involves the incorporation of a finely detailed speckle pattern within the central plane of gelatin hydrogels with varying concentrations. We find that the displacement and strain fields within a 4% gelatin gel exhibit spherical symmetry in NIC experiments when the bubble expands. However, for 6% and 10% gelatin gels, an increase in mass concentration leads to a departure from spherical symmetry and more severe material damage due to the occurrence of fractures. By introducing DIC into NIC, we overcome the limitations associated with conventional cavitation-based techniques. This fusion enables us to capture a comprehensive spatiotemporal deformation field within the material’s vicinity under large, nonlinear, finite deformations, where we can attain a quantitative evaluation of mechanical properties and material’s deformation and damage at a level of resolution that was previously unattainable. Our research has the potential to enhance our understanding of the complexities of soft material behavior, with far-reaching implications for applications ranging from medical diagnostics to the development of next-generation biomaterials.