We have investigated the optical properties of AlGaN grown on sapphire. It is found that two main luminescence peaks occur in the cathodoluminescence (CL) spectra of AlGaN films, and their energy separation increases with the increase of Al source flux during the growth. Spatially resolved CL investigations have shown that the line splitting is a result of variation of AlN mole fraction within the layer. The Al composition varies in both lateral and vertical direction. It is suggested that the difference in the surface mobility of Al and Ga atoms, especially, its strong influence on the initial island coalescence process and the formation of island-like regions on the uneven film surface, is responsible for the Al composition inhomogeneity. (C) 2008 Elsevier B.V. All rights reserved.