A CMOS Laser Diode Driver (LDD) has been designed and tested, which offers the capability of independent DC and modulation current adjustments. The DC component used to pre-bias the Laser Diode is adjustable at a range of 0-4OmA. The modulation current can also be adjusted within a range of 0-4OmA. According to experimental results it can efficiently accommodate data rates up to 2.5 Gb/s while maintaining the full range of DC pre-bias component. Special issues regarding performance degradation have been addressed during circuit design which led to at least 25% performance enhancement compared to a conventional solution. The circuit has been fabricated in AMS 0.8pm CMOS process.'