We report the effect of InchiGa1-chiAs (0 less than or equal to chi less than or equal to0.4) capping layer on photoluminescence (PL) properties of 1.3 mum wavelength self-assembled InAs quantum islands, which are formed via depositing 3.5 monolayers (ML) InAs on GaAs (1 0 0) substrate by molecular beam epitaxy (MBE). Compared with the InchiGa1-chiAs capping layer containing a larger In mole fraction chi greater than or equal to0.2 and the GaAs capping layer (chi = 0), the InAs islands covered by the In0.1Ga0.9As layer show PL with lower emission energy, narrower full-width at half-maximum (FWHM), and quite stronger intensity. The PL peak energy and FWHM become more temperature dependent with the increase of In content in the InchiGa1-chiAs capping layer (chi greater than or equal to0.2), while the InAs islands covered by the In0.1Ga0.9As layer is much less temperature sensitive. In addition, the InAs islands covered by the In0.1Ga0.9As capping layer show room temperature PL wavelength at about 1.3 mum.