A light emitting and receiving device having a first region and a second region adjacent to the first region in a plan view, includes: a light absorbing layer formed in the first and second regions; a first cladding layer formed above the light absorbing layer; an active layer formed above the first cladding layer in the first region; and a second cladding layer formed above the active layer, wherein at least part of the active layer forms a gain region, a stepped side surface having an end surface of the gain region is formed at the boundary between the first region and the second region, light produced in the gain region exits through the end surface of the gain region, and part of the light having exited reaches the light absorbing layer in the second region and is received by the light absorbing layer.