We have investigated a novel approach for improving GaN crystal quality by utilizing a stack of quantum dots (QDs) in GaN grown on sapphire substrates by molecular beam epitaxy. The GaN films were grown on GaN/AlN buffer layers containing multiple QDs and characterized using x-ray diffraction, photoluminescence, atomic force microscopy, and transmission electron microscopy. The density of the dislocations in the films was determined by defect delineation wet chemical etching and atomic force microscopy. It was found that the insertion of a set of multiple GaN QD layers in the buffer layer effectively reduced the density of the dislocations in the epitaxial layers. As compared to a density of ∼1010 cm-2 in typical GaN films grown on AlN buffer layers, a density of ∼3×107 cm-2 was demonstrated in GaN films grown with the QD layers. Transmission electron microscopy observations confirmed termination of threading dislocations by the QD layers.