Absorption induced by activated magnesium (Mg) in a p-type layer contributes considerable optical internal loss in GaN-based laser diodes (LDs). An LD structure with a distributed polarization doping (DPD) p-cladding layer (CL) without intentional Mg doping was designed and fabricated. The influence of the anti-waveguide structure on optical confinement was studied by optical simulation. The threshold current density, slope efficiency of LDs with DPD p-CL, and Mg-doped CL, respectively, were compared. It was found that LDs with DPD p-CL showed lower threshold current density but reduced slope efficiency, which were caused by decreasing internal loss and hole injection, respectively.