Abstract: A MOSFET device in strained silicon-on-SiGe and a method of forming the device are described. The said device achieves reduced junction leakage due to the lower band-gap values of SiGe. The method consists of forming isolation trenches in a composite strained-Si/SiGe substrate and growing a liner oxide by wet oxidation such that oxidation is selective to SiGe only, with negligible oxidation of silicon surfaces. Selective oxidation results in oxide encroachment under strained-Si, thereby reducing the junction area after device fabrication is completed. Reduced junction area leads to reduced n+/p or p+/n junction leakage current.