The spectral characteristics of fiber grating-stabilized 980nm pump lasers were studied theoretically and experimentally. A new process of fiber tip flattening making quadrangular-pyramid-shaped fiber lens (QPSFL) was successfully developed. This fiber tip flattening process can improve the yield fabricating QPSEL up to 20% compared with the previous research of the process without tip flattening. The QPSFL was used in coupling between the high-power 980nm laser diodes and the single mode fibers (SMFs). A fiber grating was fused at the end of the single mode fiber. The reflectivity of fiber gratings were 6%, 8% and 10%, and the length of the external cavity was about 2.5m. The measured result showed that the stability of temperature to peak wavelength and driving current to peak wavelength were improved 60 and 30 times, respectively. A theoretical modeling which combined the laser rate equation and the grating theory was successfully developed as well. The qualitative analysis of the numerical simulation showed that the peak wavelength would be locked in the reflection spectrum of the fiber grating. On the other hand, we have also finished packaging a butterfly 980nm pump laser module by the laser welding technology.