We have investigated the transport properties and device characteristics of pseudomorphic In0.4Al0.6As/InP modulation-doped heterostructures. The existence of a two-dimensional electron gas at the heterojunction was confirmed by Shubnikov de Haas (SDH) measurements. A high electron mobility transistor (HEMT) having a gate length of 1.5-mu-m showed extrinsic transconductances and drain current densities as high as 160 mS/mm and 300 mA/mm, respectively. The HEMT also showed a very small output conductance of less than 2 mS/mm and high gate-drain breakdown voltage of larger than 15 V. These results show the great potential of this HEMT for high-voltage gain and high-power microwave applications.