Self-assembled InAs/InAlGaAs quantum dots (QDs) in an InAlGaAs matrix on InP (001) substrates were grown by the alternate growth method (AGQD), where an InAs layer with a thickness of 1 monolayer (ML) and an InAlGaAs layer with a thickness of 1 ML were alternately deposited. Cross-sectional transmission electron microscopy images indicated that the aspect ratio (height/width) for the AGQDs was similar to 0.25, which was higher than similar to 0.10 of conventionally grown InAs QDs. The photoluminescence (PL) peak position for the ground states of the AGQDs was 1.485 mu m with a linewidth broadening of 42 meV at room temperature, while the PL linewidth for the conventionally grown QDs was 85 meV. And the peaks for the excited-state transitions were also clearly observed from the excitation-power dependent PL. This is the first observation on the well-defined excited-state transitions from the InP-based InAs QDs, even though there were several reports on the features of the excited states. (c) 2005 American Institute of Physics.