A failure analysis case study for oxide confined vertical cavity surface emitting laser (VCSEL) arrays will be presented. The focus of this work is on devices failing with a reduced optical output due to a rapid degradation of the laser diode. The complete analysis flow will be shown, including electrical and optical characterization as well as detailed investigations on a nanometer scale. It is known that these fails are caused by dislocations. An advanced FIB preparation method enabled cross-section and plan view TEM to successfully visualize the complete extent of a dislocation network.