Square microcavity laser with an output waveguide is proposed and analyzed by the finite-difference time-domain (FDTD) technique. For a square resonator with refractive index of 3.2, side length of 4 microns, and output waveguide of 0.4-micron width, we have got the quality factors (Q factors) of 6.7*10^(2) and 7.3*10^(3) for the fundamental and first-order transverse magnetic (TM) mode near the wavelength of 1.5 microns, respectively. The simulated intensity distribution for the first-order TM mode shows that the coupling efficiency in the waveguide reaches 53%. The numerical simulation shows that the first-order transverse modes have fairly high Q factor and high coupling efficiency to the output waveguide. Therefore the square resonator with an output waveguide is a promising candidate to realize single-mode directional emission microcavity lasers.