EXHIBIT 5

                           SMITH, ANDERSON, BLOUNT,
                     DORSETT, MITCHELL & JERNIGAN, L.L.P
                             Post Office Box 2611
                      Raleigh, North Carolina 27602-2611
                          Telephone: (919) 821-1220
                          Facsimile: (919) 821-6800

December 10, 1999

Cree Research, Inc.
4600 Silicon Drive
Durham, North Carolina 27703

Ladies and Gentlemen:

      As counsel  for Cree  Research,  Inc.  (the  "Company"),  we  furnish  the
following  opinion in connection with the proposed issuance by the Company of up
to 300,000 additional shares of its common stock (the "Common Stock"),  pursuant
to the Cree Research, Inc. 1999 Employee Stock Purchase Plan (the "Plan"). These
securities  are the  subject  of a  Registration  Statement  to be  filed by the
Company  with  the  Securities   and  Exchange   Commission  on  Form  S-8  (the
"Registration  Statement")  under the  Securities  Act of 1933,  as amended (the
"Act"),  to which this opinion is to be attached as an exhibit.  This opinion is
furnished  pursuant to the requirement of Item 601(b)(5) of Regulation S-K under
the Act.

      We have examined the Amended and Restated  Articles of  Incorporation,  as
amended,  and Bylaws, as amended, of the Company, the minutes of meetings of its
Board of Directors,  and such other documents and considered such matters of law
and fact as we, in our professional judgment,  have deemed appropriate to render
the opinion contained herein. Based on such examination,  it is our opinion that
the shares of Common Stock of the Company,  which are being registered  pursuant
to the  Registration  Statement,  may be legally  issued in accordance  with the
Company's Amended and Restated Articles of Incorporation and Bylaws, and when so
issued and duly delivered  against payment therefor pursuant to the terms of the
Plan, such shares will be legally issued, fully paid, and nonassessable.

      We hereby  consent  to the  filing of this  opinion  as an  exhibit to the
Registration Statement. Such consent shall not be deemed to be an admission that
this firm is within the  category of persons  whose  consent is  required  under
Section 7 of the Act or the regulations promulgated pursuant to the Act.

      This opinion is limited to the laws of the State of North  Carolina and no
opinion is expressed as to the laws of any other jurisdiction.

      Our opinion is as of the date  hereof,  and we do not  undertake to advise
you of matters which might come to our  attention  subsequent to the date hereof
which may affect our legal opinion expressed herein.

                                Very truly yours,

                                    SMITH, ANDERSON, BLOUNT, DORSETT,
                                      MITCHELL & JERNIGAN, L.L.P.

                                    /s/  Smith, Anderson, Blount, Dorsett
                                         Mitchell & Jernigan, L.L.P.