In this article, organic/inorganic hybrid matrix doped with Er3+,Yb3+ nanoparticles was synthesized and used as the core material to fabricate the waveguide amplifier. The absorption and luminescence spectra of the material were characterized. An X‐ray photoelectron spectroscopy analysis was performed to characterize the changes on the surface elemental composition of the material in the reactive ion etching processes. An embedded channel waveguides based on this material were demonstrated. Optical gains of 2.3 and 3.5 dB/cm at 1534 and 1550 nm wavelengths, respectively, were obtained in different dimensions of waveguides. © 2011 Wiley Periodicals, Inc. Microwave Opt Technol Lett, 2011; View this article online at wileyonlinelibrary.com. DOI 10.1002/mop.26193