This paper presents a high efficiency compact Doherty power amplifier (PA) with a novel harmonics termination for handset applications using a GaAs/InGaP heterojunction bipolar transistor (HBT) process. The novel harmonic termination circuit effectively reduces the insertion loss of the matching circuit with compact size. The Doherty PA adopts a lumped-element transformer which consists of metal insulator metal (MIM) capacitors on Silicon substrate, a bonding-wire inductor and short micro-strip lines on printed circuit board (PCB). The fabricated PA has exhibited an average output power of 25.5 dBm and a power added efficiency (PAE) as high as 50.1% under a 10MHz band width quadrature phase shift keying (QPSK) 6.16 dB peak-to-average-power-ratio (PAPR) LTE signal. The IC die size is 1mm by 1mm. The input and output Doherty transformer areas are 0.5 mm by 1.0 mm and 0.7 mm by 0.7 mm, respectively.