The continuous-wave operation at room temperature has been demonstrated for InGaN multiquantum-well (MQW) laser diodes (LDs) grown on FIELO-GaN substrates with a backside n-contact. This was made possible by introducing an important new concept of reducing threading dislocations (FIELO) during the growth of GaN substrate. InGaN active layers grown on FIELOGaN have been characterized to be far more superior than those grown on conventional sapphire substrate in terms of growth mode and resultant indium compositional fluctuation. The laser diode fabricated shows internal quantum efficiency as high as 98%.Introduction Short-wavelengths in the region of blue to violet coherent light source will enable us to double or triple the capacity of the current optical storage system if only replacing the red laser diodes (LDs) now used. This increase in capacity together with a faster transfer speed is strongly demanded in conjunction with the explosive development of recent and future internet communication society. The InGaN materials system is the strongest candidate as a blue/violet coherent light source as shown by the pioneering work of Nakamura et al. [1,2] who have recently reported a lifetime of over 10000 h [2] for a low-power InGaN MQW laser. Although this material system has a strong potential for commercial use in blue/violet LDs, however, there are still inherent problems to be solved before mass-productive devices will be practical. These problems include lack of an appropriate substrate for growing the laser structure that is suitable for mass-production processes, an unstable In compositional distribution in the active layer that depends on the growth conditions, difficulty in obtaining a beam quality appropriate for optical-disk systems that include single-horizontal-mode operation. Also, the fabrication process used to mass-produce these LDs will have to be simple and reliable, and thus inexpensive. We have recently achieved room-temperature continuous operation of high-performance InGaN multi-quantum-well (MQW) laser diodes (LDs) in the context of solving the above-mentioned problems [3,4], for which the MQW laser structure was grown on the Facet-Initiated Epitaxial Lateral Overgrowth (FIELO)-GaN substrate and n-contact was made at the backside of substrate. This was made possible by introducing an important new concept of reducing threading dislocations (FIELO) during the growth of the GaN substrates. We found that InGaN active layers grown on FIELO-GaN are superior to those grown on conventional sapphire substrates in terms of their growth mode and the resultant In compositional fluctuation. In this paper, growth and characterization of FIELO-GaN substrate is briefly described followed by optical characterization of InGaN epitaxial layers on FIELO as compared