A flip-chip light emitting diode with enhanced efficiency. The device structure employs a microcavity structure in a flip-chip configuration. The microcavity enhances the light emission in vertical modes, which are readily extracted from the device. Most of the rest of the light is emitted into waveguided lateral modes. Flip-chip configuration is advantageous for light emitting diodes (LEDs) grown on dielectric substrates (e.g., gallium nitride LEDs grown on sapphire substrates) in general due to better thermal dissipation and lower series resistance. Flip-chip configuration is advantageous for microcavity LEDs in particular because (a) one of the reflectors is a high-reflectivity metal ohmic contact that is already part of the flip-chip configuration, and (b) current conduction is only required through a single distributed Bragg reflector. Some of the waveguided lateral modes can also be extracted with angled sidewalls used for the interdigitated contacts in the flip-chip configuration.