We report the results of fabrication of integral lensed GaInAsP LED by using ion-beam milling technigue firstty in China. Baking a positive acting photoresist layer was found to facilitate a very reproducible method of forming a spherical mask suitable for ion-beam milling. Characteristics of Ar ion-beam milling of InP and mask was studied, and milling parameters are optimized for obtaining optically smooth etched surfaces.