In this paper we construct G-Hilbert schemes for finite group schemes G. We find a construction of G-Hilbert schemes as relative G-Hilbert schemes over the quotient that does not need the Hilbert scheme of n points, works under more natural assumptions and gives additional information about the morphism from the G-Hilbert scheme to the quotient. (C) 2011 WILEY-VCH Verlag GmbH & Co. KGaA, Weinheim