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We demonstrate the advantages of an AlGaN spacer layer in an InAlN high-electron-mobility transistor (HEMT). We investigated the effects of the growth parameters of the spacer layer on electron mobility in InAlN HEMTs grown by metalorganic vapor phase epitaxy, focusing on the surface roughness of the spacer layer and sharpness of the interface with the GaN channel layer. The electron mobility degraded, as evidenced by the formation of a graded AlGaN layer at the top of the GaN channel layer and the surface roughness of the AlN spacer layer. We believe that the short migration length of aluminum atoms is responsible for the observed degradation. An AlGaN spacer layer was employed to suppress the formation of the graded AlGaN layer and improve surface morphology. A high electron mobility of 1550 cm2 V−1 s−1 and a low sheet resistance of 211 Ω/sq were achieved for an InAlN HEMT with an AlGaN spacer layer.