A light emitting device with on-chip optical power readout includes a light emitting mesa and a light detecting mesa formed adjacent to each other on the same substrate of a chip, and a portion of the light emitted from the light emitting mesa is transmitted to the light detecting mesa at least through the substrate. The light emitting mesa and the light detecting mesa have exactly the same epitaxial structure and can be electrically isolated from each other by an insulation layer, or an airgap formed therebetween, or by ion implantation. The light emitting mesa and the light detecting mesa can also share an n-type structure and a common n-electrode while having their own p-electrode, respectively.