We study the interplay of elastic and plastic strain relaxation of SiGe/Si(001). We show that the formation of crosshatch patterns is the result of a strain relaxation process that essentially consists of four subsequent stages: (i) elastic strain relaxation by surface ripple formation; (ii) nucleation of dislocations at the rim of the substrate followed by dislocation glide and deposition of a misfit dislocation at the interface; (iii) a locally enhanced growth rate at the strain relaxed surface above the misfit dislocations that results in ridge formation. These ridges then form a crosshatch pattern that relax strain elastically. (iv) Preferred nucleation and multiplication of dislocations in the troughs of the crosshatch pattern due to strain concentration. The preferred formation of dislocations again results in locally enhanced growth rates in the trough and thus leads to smoothing of the growth surface. ©1995 American Institute of Physics.