This letter reports a novel approach to achieve low threshold voltage (V t ) Ni-FUlly-SIlicide (FUSI) nMOSFETs with SiON dielectrics. By using a Dysprosium-oxide (Dy 2 O 3 ) cap layer with a thickness of 5 Å on top of the SiON host dielectrics, V t,lin of 0.18 V for long-channel devices (L g = 1 µm) using NiSi-FUSI electrode is obtained, satisfying the high-performance device requirements. The V t modulation due to the Dy 2 O 3 cap layer is also maintained in the short-channel devices (with an L g,min of 90 nm as demonstrated in this letter). In particular, approximately 150× reduction in gate leakage current is seen while preserving the dielectric capacitance equivalent thickness after adding the Dy 2 O 3 cap layer on SiON dielectrics, likely due to a high-κ layer (DySiON) formation during device source/drain activation process. We also report that the Dy 2 O 3 layer does not vitally degrade the device reliability, such as positive-bias temperature instability and time-dependant dielectrics breakdown.Index Terms-Dysprosium-oxide (Dy 2 O 3 ) cap layer, low V t nMOSFETs, Ni-FUlly-SIlicide (FUSI), SiON.