jats:pThere is a great deal of interest in the underlying causes of efficiency droop in InGaN/GaN quantum well light emitting diodes, with several physical mechanisms being put forward to explain the phenomenon. In this paper we report on the observation of a reduction in the localization induced S-shape temperature dependence of the peak photoluminescence energy with increasing excitation power density. This S-shape dependence is a key fingerprint of carrier localization. Over the range of excitation power density where the depth of the S shape is reduced, we also observe a reduction in the integrated photoluminescence intensity per unit excitation power, i.e., efficiency droop. Hence, the onset of efficiency droop occurs at the same carrier density as the onset of carrier delocalization. We correlate these experimental results with the predictions of a theoretical model of the effects of carrier localization due to local variations in the concentration of the randomly distributed In atoms on the optical properties of InGaN/GaN quantum wells. On the basis of this comparison of theory with experiment we attribute the reduction in the S-shape temperature dependence to the saturation of the available localized states. We propose that this saturation of the localized states is a contributory factor to efficiency droop whereby nonlocalized carriers recombine non-radiatively.</jats:p>