Abstract: Transmission electron microscopy has been applied to study Ti and Al/Ti contacts on GaN and AlGaN/GaN as a function of annealing temperature. This has lead to a profound understanding of the role of Al, both in the contact formation on n-GaN and on AlGaN/GaN. Al in the AlGaN decreases the N-extraction by Ti out of the nitride, because of the strong Al-N bond. Al in the metal bilayer also reduces the N-extraction by Ti due to a preferential alloy mixing.