Microdisks fabricated with III-nitride materials grown on GaN substrates are demonstrated, taking advantage of the high material quality of homoepitaxial films and advanced micro-fabrication processes. The epitaxial structure consists of InGaN/GaN multi-quantum wells (MQWs) sandwiched between AlGaN/GaN and InAlN/GaN superlattices as cladding layers for optical confinement. Due to lattice-matched growth with low dislocations, an internal quantum efficiency of ∼40% is attained, while the sidewalls of the etched 8 µm-diameter microdisks patterned by microsphere lithography are optically smooth to promote the formation of whispering-gallery modes (WGMs) within the circular optical cavities. Optically pumped lasing with low threshold of ∼5.2 mJ/cm2 and quality (Q) factor of ∼3000 at the dominant lasing wavelength of 436.8 nm has been observed. The microdisks also support electroluminescent operation, demonstrating WGMs consistent with the photoluminescence spectra and with finite-difference time-domain (FDTD) simulations.