We reported that the peak efficiency together with the efficiency droop in InGaN-based light emitting diodes could be effectively modified through a simple and low-cost etch-regrown process in n-GaN layer. The etched n-GaN template contained pyramid arrays with inclined side planes. The following lateral overgrowth process from the etched n-GaN template substantially reduced the edge dislocation density and residential compressive strain in epilayers. The efficiency droop of LED samples thus could be modified due to the reduced polarization field, resulting from the strain relaxation in epilayers. What is more, the peak efficiency and reverse current leakage were also modified due to the reduction of dislocations.