A semiconductor light source with optical feedback includes a vertical member extending upward from an upper horizontal surface of a header parallel to a vertical beam projected from a semiconductor light-emitting element mounted on the horizontal surface of the header wherein the vertical member supports a light-sensing element for receiving light reflected transversely from the vertical beam by a beam splitter supported by the vertical member. The vertical beam passing through the beam splitter passes through a window or filter in a cap mounted on the header and covering the light-emitting element, the light-sensing element, the beam splitter, and the vertical member. Substantially all of the transversely reflected light impinges on the light-sensing element and can be used to control the power to the light-emitting element. A simple lens can by used to collimate the beam. Interior portions of the unit are formed from light absorbing materials such as black ceramic, black plastic, anodized aluminum, etc. The combined effect of the non-reflective interior of the assembly, the orientation of the photo-diode to have an acceptance cone perpendicular to the beam axis, the small entrance pupil, and the optical filter reduces ambient radiation in the unit by as much as −75 dB of the level outside the device. This reduces noise and drift in the automatic power control loop to produce constant intensity in the output light beam.