Step graded-refractive index (SGRI) micropillar multilayers have been introduced and demonstrated on GaN-based LEDs combined with the mesh ITO. The SGRI micropillars were produced by controlling the ratio of co-sputtered ZnO and . The introduced three-layered SGRI micropillars improved both critical angle inside GaN LEDs and Fresnel transmittance coefficient () as well as had better light coupling into the micropillars. Moreover, a high number of layers of the SGRI micropillars would aid the light coupled in the pillars to escape from the side wall of the pillar. LEDs with three-layered SGRI micropillars exhibited output power enhancements of 12.2% with a 20 mA of 3.19 V. The output power of the mesh ITO LEDs with SGRI micropillars was further enhanced to 15.3% by improving the current spreading.