Thin-body p-channel MOS transistors with a SiGe/Si heterostructure channel were fabricated on silicon-on-insulator (SOI) substrates. A novel lateral solid-phase epitaxy process was employed to form the thin-body for the suppression of short-channel effects. A selective silicon implant that breaks up the interfacial oxide was shown to facilitate unilateral crystallization to form a single crystalline channel. Negligible threshold voltage roll-off was observed down to a gate length of 50 nm. The incorporation of Si 0.7Ge 0.3 in the channel resulted in a 70% enhancement in the drive current. This is the smallest SiGe heterostructure-channel MOS transistor reported to date. This is also the first demonstration of a thin-body MOS transistor incorporating a SiGe heterostructure channel.