Transistor laser (TL) is already an established potential candidate for high speed optical interconnects and present day optical communication networks. This paper investigates theoretically the possibility of having lower base threshold current density and enhanced modulation bandwidth by inserting a tunnel injection structure in a TL having multiple quantum wells (MQW) in the base of the heterojunction bipolar transistor. Transfer of injected charge carriers from bulk to low dimensional nano-structure is assumed to occur via virtual energy states, which contributes to the terminal current. Small signal modulation response is obtained by solving the Statz–De Mars laser rate equations. The optimum threshold base current, confinement of carrier, light power outputs etc. are estimated for three QWs positioned at distances of 39, 59, and 79 nm from the emitter-base junction across the base. Incorporation of tunneling structure substantially lowers the base threshold current and increases the modulation bandwidth as compared to usual MQW transistor laser structure. The changes are more prominent with increasing tunneling probability. © 2018, Springer Science+Business Media, LLC, part of Springer Nature.