A method for making AlGaN with a high AlN molar fraction and low dislocation density is needed for fabricating deep ultraviolet emitters and detectors. In this study, we reduced the dislocation density in AlGaN over a large surface area by using low-pressure MOVPE on a continuously rugged epitaxial AlN substrate. The AlN molar fraction of the AlxGa1-xN was × = 0.51, and atomic steps in the surface were clearly observed with an atomic force microscope (AFM). In addition, the dislocation density was estimated to be 8.8 × 107 cm−2, which is two orders of magnitude lower than that of AlGaN grown on a flat AlN epitaxial layer. Our results indicate that the dislocation density of AlGaN can be greatly reduced by using a rugged AlN epitaxial substrate with continuously inclined facet.