The effect of GaAs cap layer with different thicknesses in the GaAs/In0.3Ga0.7As/GaAs heterostructure on misfit dislocation is investigated with transmission electron microscopy, and it is found that lines of misfit dislocation break up and move out of the structure when the GaAs cap layer thickness exceeds a certain amount. The breaking up and moving out of misfit dislocations, initially confined in the (001) substrate/InGaAs epilayer interface, occur mainly along the [110] direction on the interface in the structure. ©1995 American Institute of Physics.