A monolithically formed laser and photodiode. The monolithically formed laser and photodiode includes a Vertical Cavity Surface Emitting Laser (VCSEL) that includes a first PN junction. The first PN junction includes a first p layer and a first n layer. A tunnel diode is connected to the VCSEL both physically and electronically through a wafer fabrication process. A photodiode is connected to the tunnel diode. The photodiode is connected to the tunnel diode by physical and electronic connections. The tunnel diode and photodiode may share some common layers. The tunnel diode includes a second PN junction. The monolithically formed laser and photodiode allow for an integrated structure with diode biasing flexibility including the use of a single supply to bias both the laser and photodiodes.