Thermal annealing of GaInAs/GaNAs quantum wells (QWs) as well as other nitrogen- and indium-contained QW structures grown by molecular beam epitaxy and its effect on optical properties are investigated. The photoluminescence (PL) and photovoltaic (PV) spectra of annealed GaInAs/GaNAs QWs show that the luminescence properties become degraded due to the N diffusion from the GaNAs barrier layers to the GaInAs well layer. Meantime, the annealing-induced blueshift of the PL peak in this QW system is mainly induced by the change of In distribution, suggesting that the In reorganization is greatly assisted by the N-induced defects. The elucidation of annealing effect in GaInAs/GaNAs QW samples is helpful for a better understanding to the annealing effect in the GaInNAs/GaAs QWs. (C) 2003 Elsevier Science B.V. All rights reserved.