In this study, we propose a novel p‐i‐n AlGaN electron‐blocking layer for GaN‐based LEDs. The aim is to enhance the confinement of electrons and improve the efficiency of hole injection, ultimately resulting in a significant enhancement in LED performance. Detailed simulations and analysis were conducted to compare the performances of GaN‐based LEDs with a conventional EBL and our proposed EBL. It was observed that our newly proposed p‐i‐n AlGaN EBL significantly outperforms the conventional EBL in terms of output power and efficiency across a wide range of injecting currents. These improvements can be attributed to the strong reverse electrostatic field induced by our proposed p‐i‐n AlGaN EBL, which not only enhances electron confinement but also improves hole injection efficiency.