We employ photoluminescence (PL) and time-resolved PL to study exciton localization effect in InGaN epilayers.By measuring the exciton decay time as a function of the monitored emission energy at different temperatures,we have found unusual behaviour of the energy dependence in the PL decay process. At low temperature, the measured PL decay time increases with the emission energy. It decreases with the emission energy at 200K, and remains nearly constant at the intermediate temperature of 120K. We have studied the dot size effect on the radiative recombination time by calculating the temperature dependence of the exciton recombination lifetime in quantum dots, and have found that the observed behaviour can be well correlated to the exciton localization in quantum dots. This suggestion is further supported by steady state PL results.