A theoretical investigation of AlGaN UV-LED with band engineering of hole and electron blocking layers (HBL and EBL, respectively) was conducted with an aim to improve injection efficiency and reduce efficiency droop in the UV LEDs. The analysis is based on energy band diagrams, carrier distribution and recombination rates (Shockley-Reed-Hall, Auger, and radiative recombination rates) in the quantum well, under equilibrium and forward bias conditions. Electron blocking layer is based on AlaGa1-aN / Al b → cGa1-b → 1-cN / AldGa 1-dN, where a < d < b < c. A graded layer sandwiched between large bandgap AlGaN materials was found to be effective in simultaneously blocking electrons and providing polarization field enhanced carrier injection. The graded interlayer reduces polarization induced band bending and mitigates the related drawback of impediment of holes injection. Similarly on the n-side, the Alx → yGa1-x → 1-yN / AlzGa 1-zN (x < z < y) barrier acts as a hole blocking layer. The reduced carrier leakage and enhanced carrier density in the active region results in significant improvement in radiative recombination rate compared to a structure with the conventional rectangular EBL layers. The improvement in device performance comes from meticulously designing the hole and electron blocking layers to increase carrier injection efficiency. The quantum well based UV-LED was designed to emit at 280nm, which is an effective wavelength for water disinfection application.