Lateral gallium nitride (GaN) high-electron-mobility transistors present better electrical characteristics compared to silicon or silicon carbide devices such as high switching speed and low gate charge, but also present additional challenges on the module design. This article discusses a high-density GaN power module with double-sided cooling, low inductance, on-package decoupling capacitors, and integrated gate drivers. The GaN dies as well as the gate drive are sandwiched between the printed circuit board and direct bonded copper substrate to achieve compact loop and double-sided cooling effect. Design considerations and thermal performance are analyzed. A module assembly procedure is presented utilizing the layer-by-layer attachment process. Finally, a 2.7 cm × 1.8 cm half-bridge GaN power module is fabricated and tested, achieving a low power-loop inductance of 1.03 nH, and the overshoot voltage of the switching waveform is less than 5% under a 400 V/25 A double-pulse test. The thermal resistance is 0.32 K/W, verified by simulation and experimental results. The design and assembly process can be generalized and applied to high power applications to achieve high power density and high performance.