An optical ultra-short pulse train with a duration of 2.9 ps was successfully generated from a passively mode-locked laser diode. The time-bandwidth product was 0.43, and it was very close to the transform-limited value of a Gaussian waveform. The highest peak power of 10 mW in an InP-based passively mode-locked laser has been achieved. The laser is promisng as an optical source for an ultra-high-speed bit rate transmission system, especially for the optical time division multiplexing (OTDM) system.