Tensile-strained InAlAs layers have been grown by solid-source molecular beam epitaxy on as-grown Fe-doped semi-insulating (SI) InP substrates and undoped SI InP substrates obtained by annealing undoped conductive InP wafers (wafer-annealed InP). The effect of the two substrates on InAlAs epilayers and InAlAs/InP type II heterostructures has been studied by using a variety of characterization techniques. Our calculation data proved that the out-diffusion of Fe atoms in InP substrate may not take place due to their low diffusion, coefficient. Double-crystal X-ray diffraction measurements show that the lattice mismatch between the InAlAs layers and the two substrates is different, which is originated from their different Fe concentrations. Furthermore, photoluminescence results indicate that the type II heterostructure grown on the wafer-annealed InP substrate exhibits better optical and interface properties than that grown on the as-grown Fe-doped substrate. We have also given a physically coherent explanation on the basis of these investigations. (C) 2003 Elsevier Science B.V. All rights reserved.