We have investigated the effect of InAlAs/InGaAs cap layer on the optical properties of self-assembled InAs/GaAs quantum dots (QDs). We find that the photoluminescence emission energy, linewidth and the energy separation between the ground and first excited states of InAs QDs depend on the In composition and the thickness of thin InAlAs cap layer. Furthermore, the large energy separation of 103 meV was obtained from InAs/GaAs QDs with emission at 1.35 pm at room temperature. (C) 2002 Elsevier Science B.V. All rights reserved.