This paper analyzes the effects of the separation between the gate and the drain electrodes on the high-frequency performance limitations of heterostructure MODFET's. Based on the effective gate-length and carrier velocity saturation concepts first the key small-signal equivalent network model parameters of the MODFET are calculated. The concept of open-circuit voltage gain, defined as the transconductance to output conductance ratio (g/sub m//g/sub o/), has been exploited to determine the output conductance with a knowledge of the static electric field and potential at the edge of the gate on the drain side. By treating the c/sub o//spl mu//sub n/ product as a function of the gate voltage, the drain current-voltage and transconductance characteristics have been effectively modeled for practical devices. By combining the effects of the intrinsic and parasitic equivalent network parameters this paper has determined the dependence of the g/sub m//g/sub o/ ratio, the gate capacitance to the feedback capacitance ratio, the unity current gain frequency (f/sub r/) and the maximum frequency of oscillations (f/sub max/) on the gate-to-drain separation (L/sub gd/). MODFET's based on InAlAs/InGaAs heterostructures lattice-matched to InP substrate with gate-length values of 0.25 /spl mu/m, 0.15 /spl mu/m and 0.1 /spl mu/m are considered for analyses. The optimum values of L/sub gd/ calculated are 600 /spl Aring/, 420 /spl Aring/, and 340 /spl Aring/ for the corresponding maximum f/sub max/-values of 250, 370, and 480 GHz, respectively.< <ETX xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">></ETX>