Layer-by-layer epitaxial growth of CdSe on ZnSe has been observed at temperatures as low as 170-240 degrees C. Beyond this range, Reflection high energy electron diffraction (RHEED) specular spot intensity oscillations disappear, signifying a multilayer growth mode. While conventional epitaxial growth of CdSe at similar to 300 degrees C results in formation of a rough layer-like structure, a method combining the epitaxial growth of a quasi-two-dimensional (2D) CdSe layer at 230 degrees C and subsequent annealing at 310 degrees C induces the formation of discrete CdSe quantum dots (QDs). Here we show that the formation of QDs by this method relies essentially on the layer-by-layer growth of CdSe at 230 degrees C, which allows an induced roughening of the as-grown 2D layer, during the subsequent annealing step. The layer-by-layer growth mode results possibly due to the nucleation of small and irregular precursor 2D clusters during growth at low temperatures, at the kink sites of which potential barriers for downward inter-layer transport of adatoms is low/absent. (c) 2006 Elsevier B.V. All rights reserved.