A new etching technique of meltback was investigated for GaAs lensed optical devices with selective windows opending in the LPE (liquid phase epitaxy) system. In the meltback process, the etch depth and the etch shape were controlled by the degree of under-saturation, etch time and other parameters. A GaAs/AlGaAs DH layer was grown on the selectively etched hemispherical well for optical device application such as lensed surface emitting LED. The regrowth process were related with the coolin grate and the well to well spacing. A novel surface emitting LED with hemispherical AlGaAs lens was fabricated using the meltbakc and regrowth as the key process for AlaAs lens array. The light emitting efficiency of the LED was upto three times higher than the similar structure LED without lens. The meltback and regrowth technique was applicable to manufacture the optical device in LPE.