Thermal management of concentrated photovoltaic (CPV) modules is essential to avoid the decrease in conversion efficiency caused by temperature rise during their operation. This is even more important for laser-concentrated CPV hybrid systems where out-of-control temperature rise is more likely to happen. In this research, a three-dimensional simulation model for a concentrated photovoltaic-thermoelectric (CPV-TE) hybrid system was studied to optimize its parameters and improve its conversion efficiency under laser radiation. Based on the simulation results, an integrated CPV-TE device was designed, fabricated, and tested under a high-power laser. The novel integrated CPV-TE system utilizes growing electrodes to encapsulate CPV directly on the TEG. Compared to conventional CPV-TE systems that utilize silicone-filled, the integrated CPV-TE system reduces contact thermal resistance and increases output power as well as conversion efficiency. To the best of our knowledge, this is the first study to discuss and optimize a CPV-TE hybrid system for laser radiation. In addition, this research improves the efficiency of laser energy conversion, increases the reliability and stability of the system, and may facilitate the promotion of optical wireless and fiber power transmission systems in future applications.