In the absence of the use of prevention methods, AlGaN layers on GaN are known to form an array of cracks if a critical thickness is exceeded. In this study growth of AlGaN-GaN structures was carried out by metalorganic vapour phase epitaxy using sapphire substrates. Under optical and atomic force microscopy two distinct crack populations have been obseved. In thin, highly strained films an initial high density population of microcracks are found propagating from threading dislocations. This crack array extends as the thickness increases, before contracting with the onset of large cracks whick extend over many mm across the wafer. The formation of the microcrack array is very dependent on the stain in the epilayer and does not follow the classic critical thickness dependence with lattice mismatch. Avoiding stresses high enough to prevent the microcracking phenomenon may be critical in the use of highly tensile strained layers in nitride devices.1 Introduction AlGaN epilayers are critical to the formation of many III-nitride devices. These include laser diodes (LDs), heterojunction field effect transistors (HFETs), ultra-violet emitters, solar blind photodetectors and also intersubband devices. However, the lattice mismatch between AlN and GaN means that AlGaN layers grown on GaN experience a high degree of tensile stress which can lead to the formation of an array cracks over the sample surface [1][2][3]. These cracks, observable in an optical microscope on a ~ mm scale, have been reported to have a potentially dual role in the strain relaxation, through the formation of misfit dislocation on the basal plane [2] in addition to the relaxation caused by the crack itself. Such crack networks can be avoided through the use of a low temperature interlayer of AlN at the AlGaN-GaN interface for example [4], but these methods are not suitable in all cases and can cause an increased threading dislocation density.The above studies have discussed the propagation and relaxation induced by cracks, but none have reported on their nucleation or on the microscopic structural properties for layers below which the gross cracks have been observed. In a previous report [5] we have suggested that the gross cracks may be formed as a result of "microcracks" observed at much lower thicknesses. These microcracks are short, sub-µm in length an hence would not be observable by optical microscopy for example. In this paper evidence is shown that this microcracking phenomenon in thin highly strained AlGaN layers grown on GaN can occur in very thin layers indeed, and that their density rapidly decreases with the onset of "gross" crack formation.