Despite tremendous activity during the last few decades in the study of strain relaxation in thin films grown on substrates of a dissimilar material, there are still a number of problems which are unresolved. One of these is the nature of misfit dislocations forming at the film/substrate interface: depending on the misfit, the dislocations constituting the interfacial network have predominantly either in-plane or inclined Burgers vectors. While, the mechanisms of formation of misfit dislocations with inclined Burgers vectors are reasonably well understood, this is not the case for in-plane misfit dislocations whose formation mechanism is still controversial. In this paper, misfit dislocations generated to relax the strains caused by diffusion of boron into silicon have been investigated by plan-view and crosssectional transmission electron microscopy. The study of different stages of boron diffusion shows that, as in the classical model of Matthews, dislocation loops are initially generated at the epilayer surface. Subsequently the threading segments expand laterally and lay down a segment of misfit dislocation at the diffuse interface. The Burgers vector of the dislocation loop is inclined with respect to the interface and thus the initial misfit dislocations are not very efficient. However, as the diffusion proceeds, non-parallel dislocations interact and give rise to product segments that have parallel Burgers vectors. Based on the observations, a model is presented to elucidate the details of these interactions and the formation of more efficient misfit dislocations from the less-efficient inclined ones.