Abstract: A method for improving trench isolation is disclosed. A trench is etched into the substrate by using a photo mask. A bottom oxide layer, a sidewall oxide layer and a polycrystalline silicon layer are deposited into the trench and over the wafer, and are etched to clear from the surface, then over-etched till a recess is formed within the trench. Thereafter, an oxide etch step is applied to remove a certain thickness of the sidewall oxide layer in order to expose the polycrystalline silicon edge in the opening of the trench. Then, an oxidation step is utilized to form a capping oxide layer on top of the recess by oxidizing the top and the exposed edge of the polycrystalline silicon film in the trench so that a uniform plug edge can be achieved inside the trench to prevent stress problem induced by a wedge shaped oxide growing in the space between the plug and the substrate.