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For the first time, tensile strain barrier cladding (TSBC) layers were used in AlGaInP laser diodes (LDs). It was found that the TSBC layers can provide a better optical confinement and a better carrier confinement. AlGaInP LDs with and without the TSBC layers were both fabricated. It was found that the 48-mA threshold current of the 5 μm×800 μm gain-guided triple TSBC AlGaInP LD is lower than the 56-mA threshold current of the conventional AlGaInP LD with the same physical size. The characteristic temperature T0 of the triple TSBC AlGaInP LD (i.e., 117 K) is also higher than the conventional AlGaInP LD (i.e., 99 K).