A polarized light emitting diode (LED) includes a marker indicating a polarization direction. A package for the LED also includes a marker indicating the polarization direction. The markers on the LED and package are used for mutual alignment, wherein the LED is attached in a favorable orientation with respect to a package, so that the polarization direction of emitted light from the package is apparent. The marker is placed on the LED before die separation and the marker is placed on the package before alignment. The marker on the LED comprises a photolithographic pattern, an asymmetric die shape, a notch on the die, or a scratch on the die, while the marker on the package comprises an electrode shape or pattern, an asymmetric package shape, a notch on the package, or a scratch on the package. Finally, the LED or package may be installed in an external circuit or system that also indicates the polarization direction.