Erbium-doped GaN (Er:GaN) possesses superior optical, mechanical and thermal properties and is a very promising material as a gain medium for solid-state high-energy lasers. We report here the optical properties of GaN/Er:GaN/GaN core-cladding planar waveguides (PWGs). Optical confinement in the core layer has been investigated. The measured optical loss coefficients of Er:GaN PWGs at 1.54 μm are 1.0 cm −1 for the TE polarization mode and 1.2 cm −1 for the TM polarization mode. Approaches to further reduce optical loss and the optimal configuration for resonantly pumped GaN/Er:GaN/GaN PWGs for achieving amplification near 1.5 μm have been identified.