A new type distributed reflector (DR) laser, which uses the multiquantum-well (MQW) waveguide as both the active and passive distributed reflector, is proposed and realised. Its superior lasing characteristics are experimentally confirmed by introducing Ga/sub x/In/sub 1-x/As-GaInAsP compressive strained MQW layers; the characteristics include a narrow linewidth of 743 kHz, high submode suppression-ratio (SMSR) of >41 dB at 2.2 times the threshold, and about two times larger differential quantum efficiency eta /sub df/ than that of DFB lasers.<<ETX>>