In this work, we report on the growth by metalorganic vapor phase epitaxy (MOVPE) of GaN layers on AlN/Si(111) templates with step-graded AlGaN intermediate layers. First, we will discuss the optimization of the AlN/Si(111) templates and then we will discuss the incorporation of step-graded AlGaN intermediate layers. It is found that the growth stress in GaN on high-temperature (HT) AlN/Si(111) templates is compressive, although, due to relaxation, the stress we have measured is much lower than the theoretical value. In order to prevent the stress relaxation, step-graded AlGaN layers are introduced and a crack-free GaN epitaxial layer of thickness .1 mm is demonstrated. Under optimized growth conditions, the total layer stack, exceeding 2 mm in total, is kept under compressive stress, and the radius of the convex wafer bowing is as large as 119 m. The crystalline quality of the GaN layers is examined by highresolution x-ray diffraction (HR-XRD), and the full-width-at-half maximums (FWHMs) of the x-ray rocking curve (0002) v-scan and (ÿ1015) v-scan are 790 arc sec and 730 arc sec, respectively. It is found by cross-sectional transmission electron microscopy (TEM) that the step-graded AlGaN layers terminate or bend the dislocations at the interfaces.