InP layer transfer with masked implantation was investigated to eliminate ion-implantation induced damage involved in the ion-cut process. InP donor wafers were selectively implanted with hydrogen through a mask at a dose of 8.5x10(16) ions/cm(2) at 160 keV. The layers which were subsequently mechanically exfoliated were characterized by large pyramidal protrusions on the surface, associated with the unimplanted regions. This undesirable morphology was bypassed through the inclusion of a selective etch-stop layer. The resulting structures possessed flat surfaces suitable for further bonding. This process enables the transfer of finished devices, unaffected by ion-implantation, onto a variety of desirable substrates.