A new mechanism of stress relaxation in heteroepitaxial films of nanoscale thickness is suggested and theoretically described. The mechanism represents nucleation of a 'non-crystallographic' partial dislocation (at the film-substrate interface) whose Burgers vector magnitude continuously grows during the nucleation process. It is shown that the new mechanism effectively competes with the standard nucleation of a perfect misfit dislocation at the free surface of the film and its further glide towards the film-substrate interface.(Some figures in this article are in colour only in the electronic version) Thin solid films are the subject of intensive research efforts motivated by their diverse technological applications and an interest in the fundamental physical phenomena occurring in these films. Both the structure and physical properties of flat and island films are strongly influenced by misfit stresses whose relaxation often occurs by the nucleation of misfit dislocations (MDs) in film-substrate composite solids (see, for example, [1][2][3][4][5][6][7][8][9][10][11][12][13][14][15][16][17]). MDs in flat films form if the film thickness exceeds a critical value, which depends on the misfit between the crystal lattice parameters of the film and the substrate (see, for example, the pioneering works [18][19][20], reviews [21,22] and book [23]). In most cases, the critical thickness does not exceed 100 nm. That is, MDs commonly nucleate in solid films of nanoscale thickness (hereinafter called nanoscale films).Two mechanisms for the formation of MDs in epitaxial films are considered as standard. The first mechanism incorporates the nucleation and subsequent expansion of MD segments produced by dislocations arising from the substrate and threading the film [19][20][21][22][23]. The second mechanism involves the nucleation of MD semi-loops at the film surface, their subsequent glide to the film-substrate interface and further expansion [21][22][23] (see the two-dimensional schematic illustration in figures 1(a)-(d)). Both mechanisms require that dislocations overcome a rather high energy barrier, which appears either due to the attraction between parallel threading dislocation segments or as a result of the attraction of MDs to the film surface. These mechanisms for MD formation are conventionally examined in estimates 0953-8984/07/056008+09$30.00