Increasing phosphor layer thickness and concentration can enhance the lumen flux of white LED (W-LED). In this work, we found that increasing the phosphor layer thickness and concentration can increase its temperature, and there is also a maximum thickness and concentration beyond which their increase will not lead to lumen increase, but only temperature increase. Higher thickness and higher concentration also results in warm light instead of White light. The maximum thickness and concentration are found to be limited by the scattering of light rays with higher % decrease of blue light rays than the yellow light rays. The results obtained in this work can also be used to compute the temperature and thermo-mechanical stress distribution of an encapsulated LED, demonstrating its usefulness to the design of encapsulated LED packages. Simulation software like ANSYS and TracePro are used extensively to verify the root cause mechanisms.