Nickel salicide processing is implemented by implanting nickel into the active regions, prior to depositing Ni, to catalyze the reaction of Ni and Si during annealing to form a NiSi layer on the polysilicon gate electrodes and source/drain regions without the formation of rough interfaces between the nickel silicide layers and underlying silicon and without conductive bridging between the metal silicide layer on the gate electrode and the metal silicide layers on associated source/drain regions, particularly in the presence of silicon nitride sidewall spacers.