The authors demonstrate from their Raman and transmission electron microscopy results that the annealing ambient, temperature, and duration play a significant role in the formation, the evolution, and the crystallinity of Ge nanocrystals in silicon oxide matrix. With careful etching experiments, the authors established that the compressive stress experienced by the nanocrystals in the oxide matrix is intimately linked to the density, the size, and the quality of the Ge nanocrystals.