A novel indium gallium nitride laser diode is described. The laser uses indium in either the waveguide layers and/or the cladding layers. It has been found that InGaN waveguide or cladding layers enhance optical confinement with very small losses. Furthermore, the use of InGaN waveguide or cladding layers can improve the structural integrity of active region epilayers because of reduced lattice mismatch between waveguide layers and the active region.