A method for enhancing light extraction efficiency of a light emitting diode is disclosed. The method includes the steps of providing a light emitting diode including in sequence a substrate, a first layer of a first conduction type, an active layer, and a second layer of a second conduction type opposite to the first conduction type; growing a number of protrusions on at least one layer selected from the first layer, the active layer, and the second layer of the light emitting diode to form a patterned oxide layer for protecting the light emitting diode from etch; controlling height of the protrusions to achieve a predetermined etching depth of the light emitting diode; dry etching through a portion of the light emitting diode which is not protected by the patterned oxide layer to form a plurality of depressions on the light emitting diode; and removing the oxide layer from the selected layer. The light emitting diode is patterned so that more light beams can be emitted. Therefore, light extraction efficiency is enhanced.