This paper presents a study on heat transfer and residual distortion analysis of laser welded EDFA(Erbium Doped Fiber Amplifier) LD(Laser Diode) Pump using the finite element method. In the production process of LD Pump in light-wave communication system, ferrule and saddle are welded by Nd-YAG laser. These parts experience thermal and mechanical effect during heating and cooling cycle with the laser welding. Thus distortion happens in the laser-welded packaging, and it makes an error in detecting the light signal translate through optical fiber in LD Pump. The amount of final displacement produced by the laser welding is predicted using the finite element method. And the optimal shape of saddle is proposed with the results of numerical analyses to minimize the displacement.