The spectral gain width of a passively mode-locked Nd-phosphate glass laser is reduced with a birefringent filter, and towards the end of the pulse train self-phase modulated pulses are temporally compressed by the restricted gain width. Short pulses upon broad pedestals are formed. The wings are reduced by passing the pulses through an external saturable absorber. Under favorable conditions the pulse durations are shortened from about 7 ps to about 1.5 ps.