This chapter first briefly reviews the background of the development of GaN-based edge-emitting lasers and key technical issues and approaches. Then we present the design considerations and fabrication technology for the development of GaN-based vertical-cavity surface-emitting lasers (VCSELs). The technical issues and approaches for fabricating high-quality and high-reflectivity GaN distributed Bragg reflectors (DBRs) are discussed. The trade-offs among the three kinds of GaN microcavity structures are compared. Fabrication processes and key performance characteristics of hybrid and double dielectric microcavities for optically pumped GaN VCSELs are presented. The key approaches to achieve electrically pumped GaN VCSELs are analyzed and recent developments in electrically pumped GaN VCSELs are described. The future prospects of enhancing the GaN VCSEL performance and operation temperature are discussed. Finally the emerging applications for nitride-based VCSELs are briefly described.