The　850-nm　vertical-cavity　surface-emitting　laser　(VCSEL)　with　liquid　crystal　overlay　is　presented　utilizing　the　birefringence　of　nematic　liquid　crystal.　Threshold　current,　peak　of　optical　power　and　I-P　characteristics　at　different　temperatures　were　studied.　At　293　K,　the　current　between　the　first　polarization　hop　and　the　second　one　has　an　increase　of　2.2　mA　after　overlaying　the　liquid　crystal.　At　313　K　and　3　mA,　the　optical　power　difference　between　the　two　orthogonally　polarized　lights　increases　from　133.6　to　248.8　mu　W.　The　experimental　results　show　that　the　nematic　liquid　crystal　enlarges　the　stable　range　and　the　discrete　of　optical　power　of　orthogonally　polarized　state.　Our　research　could　provide　insight　into　the　design　and　fabrication　of　VCSEL　with　stable　polarization　at　high　temperatures.