Internal degradation of 980 nm emitting single-spatial-mode diode lasers during ultrahigh power operation is investigated for pulsed operation (2 µJ, 20 W). Analysis of the evolution of the emission nearfield with picosecond time resolution enables the observation of the transition from single-to multi-spatial-mode operation at elevated emission powers. Moreover, internal degradation events and subsequent defect propagation processes are in situ monitored by thermal imaging. Subsequently, these devices are opened and defect pattern are inspected by cathodo-and photoluminescence spectroscopy. The results complete earlier findings obtained with broad-area lasers and help to establish models covering defect generation and propagation in edge-emitting devices in general.