This letter describes the monolithic integration of a laser diode and an optical waveguide modulator that have the same GaAs/AlGaAs quantum well double heterostructure grown on the same substrate. The intensity of the light emitted from the laser diode is modulated by the modulator, utilizing the effect of an electric field on exciton absorption. The absorption loss coefficient of the modulator waveguide with no applied voltage was estimated to be 60 cm−1. This value is much smaller than the previously reported corresponding value of a veguide having a conventional GaAs double heterostructure. The modulation depth achieved was 7 dB for a driving voltage of 2.3 V; the cut‐off modulation frequency was 0.88 GHz. A prospect for improving these characteristics is also presented.