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The impact of dry-etch-induced defects on the electrical performance of regrown, c-plane, GaN p-n diodes where the p-GaN layer is formed by epitaxial regrowth using metal-organic, chemical-vapor deposition was investigated. Diode leakage increased significantly for etched-and-regrown diodes compared to continuously grown diodes, suggesting a defect-mediated leakage mechanism. Deep level optical spectroscopy (DLOS) techniques were used to identify energy levels and densities of defect states to understand etch-induced damage in regrown devices. DLOS results showed the creation of an emergent, mid-gap defect state at 1.90 eV below the conduction band edge for etched-and-regrown diodes. Reduction in both the reverse leakage and the concentration of the 1.90 eV mid-gap state was achieved using a wet chemical treatment on the etched surface before regrowth, suggesting that the 1.90 eV deep level contributes to increased leakage and premature breakdown but can be mitigated with proper post-etch treatments to achieve >600 V reverse breakdown operation.