A process for forming a strained channel region for a MOSFET device via formation of adjacent silicon-germanium source/drain regions, has been developed. The process features either blanket deposition of a silicon-germanium layer, or selective growth of a silicon-germanium layer on exposed portions of a source/drain extension region. A laser anneal procedure results in formation of a silicon-germanium source/drain region via consumption of a bottom portion of the silicon-germanium layer and a top portion of the underlying source/drain region. Optimization of the formation of the silicon-germanium source/drain region via laser annealing can be achieved via a pre-amorphization implantation (PAI) procedure applied to exposed portions of the source/drain region prior to deposition of the silicon-germanium layer. Un-reacted top portions of the silicon-germanium layer are selectively removed after the laser anneal procedure.