The invention relates to an isolation structure of a semiconductor device and a method of forming. An exemplary isolation structure for a semiconductor device comprises a substrate comprising a trench; a strained material in the trench, wherein a lattice constant of the strained material is different from a lattice constant of the substrate; an oxide layer of the strained material over the strained material; a high-k dielectric layer over the oxide layer; and a dielectric layer over the high-k dielectric layer filling the trench.