Microstructural evolution is directly observed when the cross-sectional film specimen of Si/SiGe/Si on insulator (Si/SiGe/SOI) is heated from room temperature (R.T., 291 K) up to 1113 K in high voltage transmission electron microscope (HVEM). The misfit dislocation at the lower interface of the SiGe layer begins to extend downwards even at 913 K. The lower interface takes the lead in roughening against the upper interface of the SiGe layer. The roughened interface is ascribed to elastic relaxation. As misfit strain is partially transferred to SOI top Si layer and misfit dislocation is prolonged at the lower interface, the roughened interface turns smooth again. Thereafter, the misfit dislocations are introduced into the upper roughened interface of the SiGe layer to release the increased misfit strain. It is suggested that the microscopic relaxation of the SiGe layer is related to dislocation behavior and strain transfer.