A highly efficient and compactly integrated balanced power amplifier (PA) for W‐CDMA handset applications is presented. To overcome the size limit of a typical balanced PA, a bulky input divider is integrated into a PA MMIC, and a complex output network is replaced with simple lumped‐element networks. For efficiency improvement at the low output power level, one of the two amplifiers in parallel is deactivated and the other is partially operated with corresponding load impedance optimization. The implemented PA shows excellent average current consumption of 34.5 mA in urban and 56.3 mA in suburban environments, while exhibiting very good load‐insensitivity under condition of VSWR=4:1.