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In this paper, the electron mobility and sheet density of the two-dimensional electron gas (2DEG) in both air and argon environments at 600 °C were measured intermittently over a 5 h duration using unpassivated and Al2O3-passivated AlGaN/GaN (with 3 nm GaN cap) van der Pauw test structures. The unpassivated AlGaN/GaN heterostructures annealed in air showed the smallest decrease (~8%) in 2DEG electron mobility while Al2O3-passivated samples annealed in argon displayed the largest drop (~70%) based on the Hall measurements. Photoluminescence and atomic force microscopy showed that minimal strain relaxation and surface roughness changes have occurred in the unpassivated samples annealed in air, while those with Al2O3 passivation annealed in argon showed significant microstructural degradations. This suggests that cracks developed in the samples annealed in air were healed by oxidation reactions. To further confirm this, Auger electron spectroscopy was conducted on the unpassivated samples after the anneal in air and results showed that extra surface oxides have been generated, which could act as a dislocation pinning layer to suppress the strain relaxation in AlGaN. On the other hand, similar 2DEG sheet densities were observed in passivated and unpassivated AlGaN/GaN samples at the end of the 5-h anneal in air or argon due to the combined impact of strain relaxation and changes in the ionized electronic states. The results support the use of unpassivated GaN-capped AlGaN/GaN heterostructures as the material platform for high-temperature electronics and sensors used in oxidizing environmental conditions. [ABSTRACT FROM AUTHOR]