Charge transfer (CT) transitions and UV induced color centers in Yb:YAG single crystals have been investigated. A simultaneous pair formation of a stable Yb 2þ ion and a hole related ðO À Þ color center (hole polaron) are observed through a CT-process. Slightly different types of hole related color centers are formed in Yb:YAG crystals containing small levels of iron impurities. Furthermore, excitation spectroscopy on the UV irradiated Yb:YAG samples could confirm an energy transfer process between Yb 3þ and Yb 2þ ions. The findings are important for an increased knowledge of the physical loss mechanisms observed in Yb-doped laser materials, such as the nonlinear decay process in Yb:YAG crystals as well as the photodarkening phenomenon in Yb-doped fiber lasers. V C 2013 AIP Publishing LLC. [http://dx