Lasers monolithically integrated with high speed MOSFETs on the silicon (Si) substrate could be a key to realize low cost, low power, and high speed opto-electronic integrated circuits (OEICs). In this paper, we report the monolithic integration of InGaAs channel transistors with electrically pumped GaAs/AlGaAs lasers on the Si substrate for future advanced OEICs. The laser and transistor layers were grown on the Si substrate by molecular beam epitaxy (MBE) using direct epitaxial growth. InGaAs n-FETs with an ION/IOFF ratio of more than 106 with very low off-state leakage and a low subthreshold swing with a minimum of 82 mV/decade were realized. Electrically pumped GaAs/AlGaAs quantum well (QW) lasers with a lasing wavelength of 795 nm at room temperature were demonstrated. The overall fabrication process has a low thermal budget of no more than 400 °C.