We present the epitaxial growth of Mg-containing Ag film on p-type GaN using domain matching epitaxy. No epitaxial growth was found in the asdeposited Ag film, but it changed to epitaxial growth as Mg atoms were added into Ag film. This is due to the fact that Mg atoms were preferentially bonded to O ones, which played a role in shrinking the surrounded Ag lattice from 4.0871 to 4.0858. In addition to that, the volume expansion induced by MgÀO chemical bonding moves the Ag atoms to the site where they are energetically most stable at the Ag/GaN interface, resulting in strong adhesion between Ag films and GaN substrate. As a result, nine domains of the (111)-oriented Ag layer (2.558 nm) are matched with eight domains of the (0001) GaN layer (2.551 nm). This arrangement has the lowest domain mismatch of 8.9%, resulting in the epitaxial growth of the (111) Ag film with the lowest surface energy. Consequently, the Mg-containing Ag film shows better thermal stability, resulting in the suppression of Ag agglomeration.