A general reduction of threading dislocations over a large area of a Te‐doped InP layer, grown on (001) InP:Fe by vapor phase epitaxy has been observed in the presence of interfacial misfit dislocations. However, near the edge of the epi‐layer, the dislocation density increases considerably. These observations have been rationalized in terms of the misfit stress‐induced glide of the threading dislocations. The estimated misfit strain is ∼0.2% and evidently results from stoichiometry mismatch between the epi‐layer and the substrate.