The advantages of blue InGaN light-emitting diodes (LEDs) with AlGaN barriers are studied numerically. The performance curves, energy band diagrams, electrostatic fields, and carrier concentrations are investigated. The simulation results show that the InGaNAlGaN LED has better performance than its conventional InGaNGaN counterpart owing to the increase of hole injection and the enhancement of electron confinement. The simulation results also suggest that the efficiency droop is markedly improved when the traditional GaN barriers are replaced by AlGaN barriers.