A key to the success of solid-state lighting is an ultraefficient light extraction, ∼90%. Recent advances in nanotechnology, particularly in creating nanorods, present an unprecedented opportunity to manipulate optical modes at nanometer scales. Here, we report an optically pumped nanorod light-emitting diode (LED) with an ultrahigh extraction efficiency of 79% at λ = 460 nm without the use of either a back reflector or thin film technology. We demonstrated experimentally three key mechanisms for achieving high efficiency: guided mode-reduction, embedded quantum wells, and ultraefficient light out-coupling by the fundamental HE(11) mode. Furthermore, we show that size reduction at nanoscale represents a new degree-of-freedom for alternating and achieving a more directed LED emission.