A novel two-section integrated mode-locked laser diode (MLLD) with a separate ultrafast uni-traveling carrier (UTC) saturable absorber section and semiconductor optical amplifier gain section is demonstrated. The UTC absorber is composed of a thin p-InGaAsP absorbing layer and an intrinsic InGaAsP collecting layer. By confining the photoexcitation process to the thin highly doped absorbing layer, the diffusion-limited hole extraction process is greatly enhanced. The investigated MLLD produces 600 fs uncompressed optical pulses at a 42 GHz repetition rate.