Lattice‐matched double‐heterostructure (DH) PbEuSeTe lasers were grown by molecular beam epitaxy (MBE) on (100) oriented PbTe substrates. Grooved mesa structures with 17–25 &mgr;m wide stripes and 0.75 &mgr;m thick Pb1−xEuxSeyTe1−yactive layers with 0≤x≤0.031 were fabricated. DH diode lasers with a PbTe active layer reached a maximum cw operation temperature of 175 K which equals the highest operation temperature achieved so far by a side optical cavity (SOC) single quantum well (SQW) PbTe/PbEuSeTe laser. The threshold current density of 3.9 A/cm2measured for this laser at 15 K is, to our knowledge, the lowest ever published for lead salt lasers. Comparison of MBE‐grown DH lasers which utilize the lattice‐matched PbTe/PbEuSeTe system to those utilizing the nonlattice‐matched PbSe/PbEuSe system shows higher operation temperatures and by far lower threshold currents for the lattice‐matched system.