The evolution of the cross‐hatch pattern (CHP) in InxGa1−xAs/GaAs heterostructures has been studied. It is found that stress is concentrated at the valleys of the CHP from the results of crack formation at the CHP valleys in the thick GaAs cap layer grown on an InGaAs layer. Residual strain in the InGaAs/GaAs epitaxial layer showing a CHP is confined along the valleys of the CHP with a nonuniform distribution throughout the epitaxial layer. The skeleton of the CHP is formed at the beginning of the rapid strain relaxation period and the depth of the CHP valleys increases after most of the strain has been released. We propose that the development of the CHP in the later stage of the growth takes place by the growth suppression at the CHP valleys due to the high level of stress concentration. ©1996 American Institute of Physics.