Interband cascade lasers typically have significantly lower threshold current and power consumption than quantum cascade lasers. They can also have advantages regarding costs and compactness with the photonic integration onto silicon substrates by epitaxial growth. This research introduces a novel examination of the relative intensity noise and the modulation dynamics of a silicon-based Fabry–Perot interband cascade laser emitting at 3.5 μm. The investigation delves into crucial parameters, such as relaxation oscillation frequency, differential gain, gain compression, and K-factor. The resonance patterns identified in relative intensity noise curves can provide essential insights for the thorough characterization of high-defect mid-infrared semiconductor structures intended for high-speed applications. Moreover, this study demonstrates the feasibility of reaching 10 Gbit/s free-space transmission using a silicon-based interband cascade laser in conjunction with an interband cascade infrared photodetector.