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A novel grating cavity tunable laser is proposed and experimentally demonstrated. It is realized by monolithically integrating a semiconductor optical amplifier, a dispersive element, a phase-control section, and an etched diffraction grating in a single chip. Tuning operation is based on electrically controlled beam deflection provided by dispersive element and phase matching by phase-control section. With the electrical control, the wavelength tuning of 8.5 nm with a sidemode suppression ratio of about 35 dB has been successfully achieved.