The early stages of InGaN/GaN quantum wells growth for In reduced conditions have been investigated for varying thickness and composition of the wells. The structures were studied by monochromated STEM–VEELS spectrum imaging at high spatial resolution. It is found that beyond a critical well thickness and composition, quantum dots (>20 nm) are formed inside the well. These are buried by compositionally graded InGaN, which is formed as GaN is grown while residual In is incorporated into the growing structure. It is proposed that these dots may act as carrier localization centers inside the quantum wells.