To date, it has remained challenging to achieve high efficiency micro-LEDs, which are desired for next generation displays and virtual/augmented reality. The performance degradation with reducing dimensions for conventional LEDs has been largely attributed to the plasma damage induced on the mesa sidewalls. Here, we show such a fundamental challenge can be overcome by developing nanowire excitonic LEDs. In this study, InGaN/GaN nanowire LED heterostructures were grown on N-polar GaN-on-sapphire substrates utilizing selective area epitaxy. Studies have shown that the exciton binding energy in strain-relaxed InGaN nanostructures can be dramatically enhanced. Due to the strong Coulombic interaction between electrons and holes, the impact of nonradiative SRH recombination on the performance of an excitonic LED is significantly reduced. By exploiting the large exciton oscillator strength of quantum-confined nanostructures, we have achieved an external quantum efficiency (EQE) exceeding 25% for a green-emitting device with lateral dimensions less than 1 micrometer, which is the highest value reported for any LEDs of this size to the best of our knowledge. It is further observed that the EQE and output power of the excitonic LED show a significantly faster rising trend with current injection, compared to conventional devices. We have identified several important factors for achieving high efficiency excitonic LEDs, including the epitaxy of nanostructures to achieve strain relaxation and reduced dislocation densities and the formation of three-dimensional quantum-confinement to enhance electron-hole wavefunction overlap. We have further investigated the effect of Mg incorporation in p-GaN layer on the device performance. We found out that an optimized Mg dopant incorporation in nanowire structures can contribute significantly to the efficiency of micro-LEDs. We have measured significantly enhanced performance by optimizing Mg dopant incorporation, which leads to reduced leakage current and improved EQE. For example, for a red-emitting micro-LED, a peak external quantum efficiency of >8% was measured for a device with a lateral dimension less than one micrometer by optimizing Mg-dopant incorporation. Through these studies, we show that by harnessing the exciton oscillator strength of nearly dislocation-free nanostructures, together with a careful optimization of p-doping in the contact layer, the efficiency bottleneck of micro-LEDs can be addressed.Conflict of interest: Some IP related to this work has been licensed to NS Nanotech, Inc., which was co-founded by Z. Mi. The University of Michigan and Mi have a financial interest in the company.