We present the effects of the photo-assisted (532 nm) semiconductor dissolution on sidewall profile and etch rate for two different types of GaAs/AlGaAs laser heterostructure and two different etch masks. The experiments show that the photo-assisted dissolution characteristics (dissolution rate and side angle profile) strongly depend on the sample layer structure and mask conductivity. The experiments apply optical interference and photoluminescence techniques to determine the surface and photo-carrier dynamics. The research evaluates the application of photo-assisted semiconductor etching to the fabrication of III-V devices using 532 nm coherent illumination. The technique successfully produces vertical sidewalls and on-demand etch-stop layers in laser heterostructure using Sulfuric acid (H2SO4): Hydrogen peroxide (H2O2): DI water (H2O) etch system.