Laser characterization can facilitate improvement in laser design by allowing optical component scientists to compare different laser designs and to confirm the validity of their theories behind their designs. Various desired characteristics of a laser are discussed. All of the following characteristics will be taken into consideration seriously during laser design. The most important operating parameters in InGaN LDs are the internal quantum efficiency ( ) i η , the internal loss i α and the transparency current density J0 as these are the key parameters which control the operating characteristics of LDs. The characteristic temperature is also a very important parameter from the viewpoint of the practical application of these lasers. Well-number effect on the characteristics temperature will also be investigated through the simulation software. Experimental and theoretical work done by Domen et al. (1998) concluded that the InGaN laser diode quantum efficiency improves when the number of wells is decreased. Our work supports prior research results.