Green laser diodes (LDs) still perform worst among the visible and near-infrared spectrum range, which is called the “green gap.” Poor performance of green LDs is mainly related to the p-type AlGaN cladding layer, which on one hand imposes large thermal budget on InGaN quantum wells (QWs) during epitaxial growth, and on the other hand has poor electrical property especially when low growth temperature has to be used. We demonstrate in this work that a hybrid LD structure with an indium tin oxide (ITO) p-cladding layer can achieve threshold current density as low as $1.6\mathrm{kA}/{\mathrm{cm}}^2$, which is only one third of that of the conventional LD structure. The improvement is attributed to two benefits that are enabled by the ITO cladding layer. One is the reduced thermal budget imposed on QWs by reducing p-AlGaN layer thickness, and the other is the increasing hole concentration since a low Al content p-AlGaN cladding layer can be used in hybrid LD structures. Moreover, the slope efficiency is increased by 25% and the operation voltage is reduced by 0.6 V for hybrid green LDs. As a result, a 400 mW high-power green LD has been obtained. These results indicate that a hybrid LD structure can pave the way toward high-performance green LDs.