A degraded Ga1−xAlxAs double‐heterostructure injection cw laser diode with a lifetime of 1070 h was examined in cross section by TEM. The device contains defects whose contrast is identical to that produced by coherent or partially coherent precipitates and/or by prismatic dislocation loops. They have not previously been observed either in undegraded Ge‐ or Sn‐doped material or in devices degraded by DLD formation. These defects were observed in the topp(Ge) ‐GaAs layer as well as in thep(Ge) ‐Ga1−xAlxAs layer adjacent to it. There is a tendency for these defects to decorate the interface between these two layers as well as the interface between the active region and thep(Ge) ‐Ga1−xAlxAs layer. Furthermore, these defects seem to cluster in regions adjacent and above these two interfaces. These defects have not, however, been observed in the active, then‐ (Sn) ‐Ga1−xAlxAs, and then‐GaAs substrate regions.