A novel design scheme for high speed [1.31 μm]TM mode lasers based on InGaAsP (well)/InGaAlAs (barrier) strain-compensated multiple quantum wells (MQWs) is proposed. Calculation on luminescence property with five different MQWs (10 nm, 1% tensile-strained In0.49Ga0.51As0.79P0.21 well with 12 nm, 0.5% compress-strained InGaAlAs barriers of Eg =1.309, 1.232, 1.177, 1.136, 1.040 eV, respectively) and simulation on laser diodes based on these MQWs are presented. The results of these studies indicate that moderately small barrier height can not only provide effective confinement for charge carriers, but also make carrier distribution in the MQWs more uniform, thus acquiring advantageous luminescence property and device performance. Our investigation gives guidance to the design and fabrication of [1.31 μm] TM mode lasers of low threshold current, high characteristic temperature, and wide modulation bandwidth.