The fiber grating external cavity laser (FGECL) module packaged with fiber bragg grating and FP laser diode is investigated. The optical spectrum of FGECL is single longitudinal mode. In order to get stable single longitudinal mode, the FP laser diode coated with an AR-coating (reflectivity is 0.5%). To achieve higher coupling efficiency between laser diode and fiber, the hyperbolic-end lensed fiber is used. A coupling efficiency of up to 86% has been demonstrated. The alignment and fix between laser diode and fiber are accomplished by laser welding technology. The results of FGECL module show that the output power and side-mode suppression ratio (SMSR) are more than 2mW and 44dB, respectively. Comparing to the non-AR coated FGECL, the result of SMSR is 5 dB improved. Dynamic tests of the FGECL module operate at 2.5Gbps, including the eye diagram, bit error rates, impedance matching of laser diode, signal current, and the limit of the dispersion in the optical communication system has been measured. The FGECL module can meet the ITU-T G.957 standard.