The effect of elastic strain in epitaxial InGaN layers coherently grown on GaN wafers on spinodal decomposition of the ternary compound is examined. The effect results in considerable suppression of phase separation in the strained InGaN layers. To predict correctly the position of the miscibility gap in the T-x diagram it is important to take into account the compositional dependence of the elastic constants of the ternary compound. The contribution of the elastic strain to the Gibbs free energy of InGaN is calculated assuming uniform compression of the epitaxial layer with respect to the underlying GaN wafer. The interaction of binary constituents in the solid phase is accounted for on the base of regular solution model. The enthalpy of mixing is estimated using the Valence Force Field approximation. The strain effect becomes stronger with increasing In content in the InGaN. As a result the miscibility gap shifts remarkably into the area of higher InN concentration and becomes of asymmetrical shape. Various growth surface orientations and the type of crystalline structure (wurtzite or sphalerite) provide different effects of the elastic strain on phase separation in ternary compounds.