Thermal stresses in elastic multilayer systems have been previously modelled. However, because the displacement compatibility condition at interfaces between layers must be satisfied, the complexity in obtaining a closed-form solution increases with the number of layers in the system. As a result, existing analyses often adopt simplifications (e.g. assuming a constant elastic modulus throughout the system) to obtain closed-form solutions or are solved numerically by computer. The present study develops an analytical model, in which the complexity in obtaining a closed-form solution is independent of the number of layers and an exact closed-form solution can be concisely formulated. Specific results are calculated for elastic thermal stresses in (AlGa)As laser diodes, which consist of five layers. Also, the zero-order and the first-order approximations are formulated based on the exact closed-form solution, and their accuracy is examined. The acceptability of assuming a constant elastic modulus in the system in existing analyses is also discussed. (C) 2002 Elsevier Science B.V All rights reserved.