We have implanted Nd and Er ions into x-and z-cut LiNbO 3 single crystals and investigated the recrystallization of the host and the rare earth solubility and diffusion. The diffusion is substitutional, fastest parallel to c-axis and characterized by an activation energy of 3.6 eV.Optical fluorescence experiments of Er 3 + in a waveguide configurationshow stimulated emission and amplification at 1.53, 1.55 and 1.56 Am wavelength.