The design of the short-cavity vertical cavity surface emitting laser (VCSEL) based on InP substrate in 1.55μm waveband is presented. The optimizations of the top and bottom mirrors and the resonant cavity length were implemented, and then the resonant cavity length was optimized. Finally, the VCSEL with the 1λ micro-cavity structure was employed and simulated with Matlab software, and the simulation results show that the output power of the VCSEL is enhanced to 2.22mW, the saturated relaxation response frequency fR,sat is 34.5GHz, and the maximum -3dB bandwidth is 30.5GHz, which increases by about 60% compared to the existing maximum bandwidth (19GHz) in this waveband.