A mixed fluoride crystal of LiLu 0.65 Y 0.35 F 4 doped with Nd 3+ ions was grown by the Bridgman-Stockbarger method. Polarized absorption and luminescence spectra as well as luminescence lifetime were measured at room temperature. Emission probabilities, branching ratios and radiative lifetime were studied within the Judd-Ofelt theory and the emission cross section spectra were calculated. Efficient continuous wave laser operation was demonstrated with the crystal. A maximum output power of 7.7 W and slope efficiency of 60% were achieved at 1047 nm for the TEM 00 mode.