The ductile fracture process in porous metals due to growth and coalescence of micron scale voids is affected not only by the imposed stress state but also by the distribution of the voids and the material size effect. The objective of this study is to understand the interaction of the inter-void spacing (or ligaments) and the resultant gradient-induced material size effect on void coalescence for a range of imposed stress states. To this end, three-dimensional finite element calculations of unit cell models with a discrete void embedded in a strain gradient-enhanced material matrix are performed. The calculations are carried out for a range of initial inter-void ligament sizes and imposed stress states characterized by fixed values of the stress triaxiality and the Lode parameter. Our results show that in the absence of strain gradient effects on the material response, decreasing the inter-void ligament size results in an increase in the propensity for void coalescence. However, in a strain gradient-enhanced material matrix, the strain gradients harden the material in the inter-void ligament and decrease the effect of inter-void ligament size on the propensity for void coalescence.