We used deep level transient spectroscopy (DLTS) and HR-TEM techniques to study traps and defects in pre-and poststressed AlGaN/GaN high electron mobility transistors (HEMTs) grown by MOCVD on semi-insulating SiC substrates. DLTS identified two dominant traps with activation energies of 0.5 and 0.7 eV in both pre-and post-stressed GaN HEMTs. Electrical stress resulted in a significant increase in the density of 0.5 eV traps. This is attributed to point defects (most likely N antisites) in the AlGaN barrier and clearly suggests that these traps play a critical role in degradation of the devices. Cross-sectional TEM confirmed physical damage on the edge of the gate that was likely due to the inverse piezoelectric effect.