Transparent conductive layers (TCLs) deposited on a GaP window layer were used to fabricate high-brightness p-side-up thin-film AlGaInP light-emitting diodes (LEDs) by the twice wafer-transfer technique. Indium tin oxide (ITO) and aluminum-doped zinc oxide (AZO) were used as TCLs for comparison. The TCLs improved droop of external quantum efficiencies (EQE) of LEDs and junction temperature, which result in increasing the light output power and thermal stability of the LEDs. The droop efficiency of Ref-LED, ITO-LED and AZO-LED were 64%, 27% and 15%, respectively. The junction temperature of ITO-LED and AZO-LED reduced to 49.3 and 39.6 °C at an injection current of 700 mA compared with that (80.8 °C) of Ref-LED. The LEDs with AZO layers exhibited the most excellent LED performance. The emission wavelength shifts of LEDs without a TCL, with an ITO layer, and with an AZO layer were 17, 8, and 3 nm, respectively, when the injection current was increased from 20 to 1000 mA. The above results are promising for the development of AZO thin films to replace ITO thin films for AlGaInP LED applications.