In this chapter, growth mechanism of GaN and AlGaN by MOVPE is described in detail. The parasitic reaction that generates particulates in vapor phase is the most probable limiting factor of maximum growth rate of GaN and AlGaN. Both experimental and quantum chemical study of vapor phase reaction between organo-metals and ammonia is described. From the close insight of vapor phase reaction, high flow speed three layered gas injection has been developed. By employing this three-layer gas-injection, GaN was grown with growth rate as high as 28m/h at atmospheric pressure. As long as the present growth conditions are concerned, SIMS and XRD results suggested that the growth rate of 12m/h would be a practical limitation of good quality material in terms of electrical and structural properties.