transient protection for 0.5W laser diode switching driver
Use a GROUND plane.

And make the enclosed area of M1, R1, D1 about 0.5 cm on a side. In other words, you should get the inductance, through which the switched-current flows, down down down to just a few nanoHenries.

Given Vspike = L * dI/dT,

with 100 nanoHenries inductance (4", 100mm, of wire NOT over a plane) and 0.2amps switching in 5 nanoSeconds, the 

Vspike = 100nH * 0.2amp / 5nsec = (the 'nano' cancel) == 4 volt spike.

Notice the spike-generator is M1/R1/D1. You can place the gate-driver some distance away, but use twisted-pair or coax-cable to connect to the FET's gate. And explore using source-termination (approximately 100 ohms at input to the TwPair, or 50 ohm input to coax). If you choose to look at the gate signal, use a 1pF or 2pF active-probe, with the probe's GND connected only 1cm away to the GND plane.