A new flip-chip AlGaInP LED with current-guiding structure is designed. Experimental results show that the output optical power increases by 17.33% than that of the ordinary flip-chip AlGaInP LED with a voltage of 2.19 V at the injection current of 20 mA. Through the current-guiding structure, the injection current of device is actively guided outside of the electrodes, effectively increasing the effective carrier number for luminescence in the active area outside the electrode, while reducing the current crowding phenomenon. This greatly improves the optical efficiency of the device.