The optical features of far ultraviolet laser diodes (UV LDs) with peak wavelength emission of 221 nm have been numerically analyzed. Global research teams are developing aluminum gallium nitride (AlGaN)-based farUV LDs on Sapphire and AlN substrates as an alternative to Mercury lamps for air-water purification, polymer curing, and bio-medical devices. In this study, the light output power, internal quantum efficiency, stimulated recombination rate curve, and optical gain curve of the compositionally graded p-cladding layer (p-CL) were studied and show significant improvements. Therefore, the optimized structure can reduce the overflow of electrons and increase the injection of holes. This approach proves to be an efficient method for enhancing farUV LDs’ overall performance when compared to the reference structure.