Influence of a thin protective but subsequently evaporated InAs layer on the regrowth of AlGaAs has been studied. It was found that although most of the InAs could be evaporated by thermal desorption, some would react with Al 0.36Ga0.64As to form InAlGaAs. These InAlGaAs islands act as potential wells for carrier recombination and dominate the photoluminescence spectrum. Transmission electron microscopy photographs show that dislocations are formed near the islands. These defects are caused by lattice mismatch between AlGaAs and InAlGaAs. These islands and defects strongly affect the optical quality of surrounding Al0.36Ga0.64As and quantum wells.