In this study, external cavity laser diode has been modelled and non-linear equations of system are being solved by using Volterra series. In the study, linearized laser diodes rate equations are reorganized for external cavity and these equations are solved with harmonic input method using Volterra series. The transfer functions brought about for harmonics are obtained using Volterra-Weiner series approach. The stability analysis of system is compared from output to input using these transfer functions. Nyquist stability criteria have been used in the analysis.