A 2.4 V operated enhancement-mode pseudomorphic high electron mobility transistors (E-PHEMTs) with high output power and power-added-efficiency (PAE) have been developed. With optimally designed epitaxial structure and gate recess process, the E-PHEMT shows high power performance and high power gain. Under 2.4 V bias at 1.9 GHz, the E-PHEMT shows maximum output power of 32.25 dBm and maximum power-added efficiency of 61.45% with linear power gain of 13.93 dB when the device was tuned for maximum output power match. When tuned for maximum output power added efficiency, the E-PHEMT can achieve a maximum PAE of 78.51%. The developed E-PHEMT with superior power performance is one of the candidates for power amplifiers used for 2.4 V-operated 3G wireless communication system.