A tapered AlGaN electron blocking layer with step-graded aluminum composition is analyzed in nitride-based blue light-emitting diode (LED) numerically and experimentally. The energy band diagrams, electrostatic fields, carrier concentration, electron current density profiles, and hole transmitting probability are investigated. The simulation results demonstrated that such tapered structure can effectively enhance the hole injection efficiency as well as the electron confinement. Consequently, the LED with a tapered EBL grown by metal-organic chemical vapor deposition exhibits reduced efficiency droop behavior of 29% as compared with 44% for original LED, which reflects the improvement in hole injection and electron overflow in our design.