We review epitaxial formation, basic properties, and device applications of a novel type of nanostructures of mixed (0D/2D) dimensionality that we refer to as quantum well-dots (QWDs). QWDs are formed by metalorganic vapor phase epitaxial deposition of 4–16 monolayers of InxGa1−xAs of moderate indium composition (0.3 < x < 0.5) on GaAs substrates and represent dense arrays of carrier localizing indium-rich regions inside In-depleted residual quantum wells. QWDs are intermediate in properties between 2D quantum wells and 0D quantum dots and show some advantages of both of those. In particular, they offer high optical gain/absorption coefficients as well as reduced carrier diffusion in the plane of the active region. Edge-emitting QWD lasers demonstrate low internal loss of 0.7 cm−1 and high internal quantum efficiency of 87%. as well as a reasonably high level of continuous wave (CW) power at room temperature. Due to the high optical gain and suppressed non-radiative recombination at processed sidewalls, QWDs are especially advantageous for microlasers. Thirty-one μm in diameter microdisk lasers show a high record for this type of devices output power of 18 mW. The CW lasing is observed up to 110 °C. A maximum 3-dB modulation bandwidth of 6.7 GHz is measured in the 23 μm in diameter microdisks operating uncooled without a heatsink. The open eye diagram is observed up to 12.5 Gbit/s, and error-free 10 Gbit/s data transmission at 30 °C without using an external optical amplifier, and temperature stabilization is demonstrated.