In this study, we investigated a method for growing AlGaN using an intermediate AlN molar fraction on a sputtered AlN template with high-temperature annealing via an AlN homoepitaxial layer. We examined in detail the growth mode dependence of AlGaN on the amount of Ga doping in the AlN homoepitaxial layer.As a result, homoepitaxial growth of AlN on sputtered AlN improved the surface flatness. In addition, it was found that the macroscopic flatness is improved by increasing the amount of Ga doping, but this decreases the microscopic flatness. Moreover, when Al 0.60 Ga 0.40 N was grown on homoepitaxial AlN layers with different amounts of Ga doping, a difference in the growth mode was observed, and this revealed a remarkable difference in the dislocation density of Al 0.60 Ga 0.40 N. We also investigated the dislocation density dependence of the lasing threshold power density in a UV-B optical pumped laser. As a result, the lasing threshold power density was reduced from approximately 220 to 50 kW cm −2 by reducing the dislocation density from 1.6 × 10 9 to 8.0 × 10 8 cm −2 . It was confirmed that it is, therefore, essential to reduce the dislocation density to reduce the threshold power density of the UV-B laser.