Self-assembled InAs quantum dots ͑QDs͒ embedded in GaN 0.007 As 0.993 strain compensating layers have been grown by metalorganic-molecular-beam epitaxy on a GaAs ͑001͒ substrate with a high density of 1ϫ10 11 cm Ϫ2 . The photoluminescence properties have been studied for two periods of InAs quantum dots layers embedded in GaN 0.007 As 0.993 strain compensating layers. Four well-resolved excited-state peaks in the photoluminescence spectra have been observed from these highly packed InAs QDs embedded in the GaN 0.007 As 0.993 strain compensating layers. This indicates that the InAs QDs are uniformly formed and that the excited states in QDs due to the quantum confinement effect are well defined. This is explained by tensile strain in GaNAs layers instead of the usual GaAs layers to relieve the compressive strain formed in InAs QDs to keep the total strain of the system at a minimum.