An Er:Yb:Sr 3 Lu 2 (BO 3 ) 4 crystal was grown by the Czochralski method. Spectral properties of the crystal were investigated, including the absorption and fluorescence spectra and the fluorescence decay. The fluorescence quantum efficiency of the 4 I 13/2 level of Er 3+ ions and efficiency of energy transfer from Yb 3+ to Er 3+ ions were calculated. Endpumped by a diode laser at 970 nm in a hemispherical cavity, laser performance of a 1.08-mm-thick Z-cut Er:Yb:Sr 3 Lu 2 (BO 3 ) 4 crystal was investigated. Compared with those of Er:Yb:Sr 3 Y 2 (BO 3 ) 4 crystal obtained in the same experimental condition, lower threshold, higher maximum output power, and comparable slope efficiency were achieved in the Er:Yb:Sr 3 Lu 2 (BO 3 ) 4 crystal.