Abstract. We consider time-continuous spatially discrete approximations by the Galerkin finite element method of initial-boundary value problems for semilinear parabolic equations with nonsmooth or incompatible initial data. We find that the numerical solution enjoys a gain in accuracy at positive time of essentially two orders relative to the initial regularity, as a result of the smoothing property of the parabolic evolution operator. For higher-order elements the restriction to two orders is in contrast to known optimal order results in the linear case.