The effect of the active region inhomogeneity on the spectral characteristics of InAs/InP quantum-dash (Qdash) lasers is examined theoretically by solving the coupled set of carrier-photon rate equations. The inhomogeneity due to dash size or composition fluctuation is included in the model by considering dispersive energy states and characterized by a Gaussian envelope. In addition, the technique incorporates multilongitudinal photon modes and homogeneous broadening of the optical gain. The results predict a red shift in the central lasing wavelength of Qdash lasers on increasing the inhomogeneous broadening either explicitly or implicitly, which supports various experimental observations. The threshold current density and the lasing bandwidth are also found to increase. © 2012 IEEE.