For realizing high power generator efficiency based on thermoelectricity, Si, Ge and SiGe nanostructures have attracted attention. In this paper, we have investigated a new approach to fabricate an ultrathin polycrystalline SiGe-on-insulator (pc-SGOI) substrate by a simple process based on Si and Ge deposition followed by thermal diffusion suitable for thermoelectric devices. A 45-nmthick SGOI layer with a Ge fraction of nearly 0.45 was fabricated, and the Ge fraction was homogeneous in plane over the layer. Its thermal conductivity was 0.87 W mK −1 , lower than that of a single-crystalline SGOI layer. This is caused by the enhancement of scattering of phonons at grain boundaries in the pc-SGOI layer.