A theoretical analysis of a strain-compensated multiple-quantum-well (MQW) AlGaInP laser diode (LD) has been conducted to minimize the operation current and enhance the operation temperature. The effect of the barrier height on the tensile-strain quantum barriers was studied under the same optical confinement and emission wavelength. The simulation results suggest that a more uniform and higher carrier distribution inside the MQW region can be obtained for a lower barrier height owing to the improvement in carrier injection. The performance of the AlGaInP LD is thus improved. However, when the barrier height is too small, higher spontaneous rates in the quantum barrier region deteriorate the LD performance instead. Theoretical analysis shows that an Al composition of 0.1 for the 0.5%-tensile-strain Al
x
Ga
y
In1-x-y
P barrier is the optimal value for strain-compensated MQW AlGaInP LDs.