Epitaxial beta-FeSi2 nanodots were grown on strained Si/Si0.8Ge0.2 (001) substrates by solid phase epitaxy (SPE) method. High quality beta-FeSi2 nanodots were grown at 800 degreesC by employing strained Si/Si0.8Ge0.2 substrates, owing to a decrease of the in-plane lattice mismatch between the lattice parameters of the beta-FeSi2 [001]and [010] directions and that of Si substrate. Ordered beta-FeSi2 arrays along (110) direction were observed to form on surfaces of strained Si/Si0.8Ge0.2 substrate. It is shown that dislocation slip originated from compositionally graded Si1-xGex layers can produce local surface-strain and local thickness variation. The surface features are used for the fabrication of epitaxial beta-FeSi2 nanostructures on strained Si/Si0.8Ge0.2 substrate. (C) 2004 Elsevier B.V. All rights reserved.