Laser diodes employing a strain-compensated GaAs1−xBix/GaAs1−yPy single quantum well (SQW) active region were grown by organometallic vapor phase epitaxy (OMVPE). High resolution x-ray diffraction, room temperature photoluminescence, and real-time optical reflectance measurements during the OMVPE growth were used to find the optimum process window for the growth of the active region material. Systematic post-growth in situ thermal anneals of various lengths were carried out in order to investigate the impacts of thermal annealing on the laser device performance characteristics. While the lowest threshold current density was achieved after the thermal annealing for 30 min at 630 °C, a gradual decrease in the external differential quantum efficiency was observed as the annealing time increases. It was observed that the temperature sensitivities of the threshold current density increase while those of lasing wavelength and slope efficiency remain nearly constant with increasing annealing time. Z-contrast scanning transmission electron microscopic) analysis revealed inhomogeneous Bi distribution within the QW active region.