An integrated laser diode driver (LDD) driving an edge-emitting laser diode was designed and fabricated by 0.35 μm BiCMOS technology. This paper proposes a scheme which combines the automatic power control loop and temperature compensation for modulation current in order to maintain constant extinction ratio and average optical power. To implement temperature compensation for modulation current, a novel circuit which generates a PTAT current by using the injecting base current of a bipolar transistor in saturation region, and alternates the amplifier feedback loop (closed or not) to control the state of the current path is presented. Simulation results showed that programmed by choice of external resistors, the IC can provide modulation current from 5 mA to 85 mA with temperature compensation adjustments and independent bias current from 4 mA to 100 mA. Optical test results showed that clear eye-diagrams can be obtained at 155 Mbps, with the output optical power being nearly constant, and the variation of extinction ratio being lower than 0.7 dB.