Co2+‐doped Mg0.4Al2.4O4 single crystal up to ∅︁28×40 mm3 was successfully grown by the Czochralski method. By using this crystal as saturable absorber, we have demonstrated a diode‐end‐pumped passively Q‐switched Er:glass microchip laser operating at 1535 nm for the first time to the best of our knowledge. The dependences of average output power, repetition rate and pulse energy on the incident pump power were investigated. In the passive Q‐switching regime, a maximum average output power of 22.12 mW was obtained at the incident pump power of 410 mW. The narrowest pulse width, the largest pulse energy and the highest peak power were obtained to be about 3.5 ns, 4.8 μJ, and 1.37 kW, respectively. (© 2011 by Astro Ltd., Published exclusively by WILEY‐VCH Verlag GmbH & Co. KGaA) (© 2011 by Astro Ltd., Published exclusively by WILEY‐VCH Verlag GmbH & Co. KGaA)