InGaN films have been grown on GaN and AlGaN epitaxial layers by metalorganic vapor phase epitaxy. The “composition pulling effect” during the initial InGaN growth stages has been studied as a function of the lattice mismatch between the InGaN and the underlying epitaxial layer. The crystalline quality of the InGaN is good near the InGaN/GaN interface and the composition is close to that of GaN. However, with increasing InGaN film thickness, the crystal quality deteriorates and the indium mole fraction increases. The composition pulling effect becomes stronger with increasing lattice mismatch. It is suggested that indium atoms are excluded from the InGaN lattice during the early growth stages to reduce the deformation energy from the lattice mismatch. TEM observations of the InGaN/GaN structure reveal that the degradation of the crystalline quality of InGaN films grown on GaN is caused by pit formation which arises from edge dislocations propagating through the InGaN film from the underlying GaN.