Using transmission electron microscopy we observe the dissociation of 60° misfit dislocations at the interface of SiGe/Si multilayers, extending into the substrate for distances of 5.0–7.5 nm. Analysis using elasticity theory shows that this dissociationis the equilibrium configuration for individual 60° misfit dislocations, as it is for 60° mixed dislocations in bulk Si, and that the compressively strained multilayer film serves mainly to position the partial dislocations and stacking fault with respect to the free surface. We observe both undissociated 60° and Lomer edge dislocations after annealing, and conclude that these result from dislocation climb in the interface. Since the dislocations move off their slip plane during climb, they cannot remain dissociated. Significant climb and Lomer dislocation formation for these low misfit layers is observed at temperatures above 850 °C and for samples with a high initial dislocation density, such as found in thicker as-grown samples. The dislocation configuration formed during annealing is distinct from that reported to form during growth of higher mismatch films: the Lomer dislocations tend to be segmented, with the segments connected by perfect 60° dislocations.