Multimode interference (MMI) structure is introduced in semiconductor laser used in optical communication system to realize higher power and better temperature tolerance. Using beam propagation method (BPM), Multimode interference laser diode (MMI-LD) is designed and fabricated in InGaAsP/InP based material. As a comparison, conventional semiconductor laser using straight single-mode waveguide is also fabricated in the same wafer. With a low injection current (about 230 mA), the output power of the implemented MMI-LD is up to 2.296 mW which is about four times higher than the output power of the conventional semiconductor laser. The implemented MMI-LD exhibits stable output operating at the wavelength of 1.52 µm and better temperature tolerance when the temperature varies from 283.15 K to 293.15 K.