A reflectance-type optical sensor includes one or more photodiodes formed in a semiconductor substrate. A well having sidewalls and a bottom is formed in the top surface of the substrate, and a reflective layer is formed on the sidewalls and bottom. A light-emitting diode (LED) is mounted in the well, so that light emitted laterally and rearwardly from the LED strikes the sidewalls or bottom and is redirected in a direction generally perpendicular to the top surface of the substrate. The optical sensor can be fabricated using microelectromechanical systems (MEMS) fabrication techniques.