A method for forming a stressed channel field effect transistor (FET) with source/drain buffers includes etching cavities in a substrate on either side of a gate stack located on the substrate; depositing source/drain buffer material in the cavities; etching the source/drain buffer material to form vertical source/drain buffers adjacent to a channel region of the FET; and depositing source/drain stressor material in the cavities adjacent to and over the vertical source/drain buffers.