We report on the effect of silver (Ag) nanoparticles on the optical transmittance and electrical conductivity of indiumtin oxide (ITO) transparent conducting layer deposited on p-GaN layer of light-emitting diodes (LEDs). The sheet resistance of ITO and the series resistance of LEDs were decreased due to the increased electrical conductivity of ITO by Ag nanoparticles, compared with those of the LEDs with a bare ITO only. The ITO transmittance was also improved by localized surface plasmon resonance between the incident light and the randomly distributed Ag nanoparticles on ITO. The optical output power of LEDs with Ag nanoparticles on ITO was increased by 16% at 20 mA of injection current. (C) 2015 Elsevier B.V. All rights reserved.