In order to lower the threshold current and raise the efficiency of 808 nm laser diode, traditional no strain quantum well (QW) is replaced by Al0.3Ga0.7As/InAlGaAs/Al0.3Ga0.7As compression strain QW as the active region. The device structure is optimized firstly, then the structure is grown by metal organic chemical vapor deposition (MOCVD). By using the proper MOCVD epitaxial condition, the uniformity of the QW photoluminescence (PL) peak wavelength reaches 0.1%. For devices of 50 μm strip width and 750 μm cavity length after facet coating, the threshold current is as low as 81 mA, the slope efficiency is 1.22 W/A, and the wall-plug efficiency reaches 53.7%. By fitting the external quantum efficiency and the cavity length, a cavity loss of 2 cm-1 and internal quantum efficiency of 90% are obtained. All results show that the compression strain laser diodes have better characteristics.