The invention provides a light-emitting diode with a novel P-type electron barrier layer structure and a growth method. The LED epitaxy structure of the light-emitting diode comprises a substrate, a low-temperature GaN buffer layer, a GaN non doping layer, an N-type GaN layer, a multiple quantum well layer, a low-temperature GaN layer, a P-type InAlGaN electron barrier layer, a high-temperature P-type GaN layer and a P-type contact layer which are sequentially arranged from bottom to top. According to a P-type InyAlxGal-x-yN electron barrier layer of the composite structure, In components are added, and the InyAlxGal-x-yN lattice constant is adjusted, so that lattice matching between the P-type GaN layer and the multiple quantum well layer can be achieved, dislocation density is reduced, lattice quality is improved, and expected energy band gap value and energy band drift rate are obtained. Consequently, electron leakage is effectively reduced, and the injection rate of holes is improved. Moreover, a gradually-changing structure of the P-type InAlGaN drift rate is designed, and the restriction to hole vertical migration is avoided, so that the injection efficiency of holes is improved, and the light-emitting efficiency of a GaN-based light-emitting diode is further improved.