Abstract. Reliable turn-key high-power ultrafast laser sources are required for a variety of applications in science, industry, and medicine. Fiber-based laser systems have the potential to fulfill this requirement. In this Chapter the possibilities of rare-earth doped fibers for the amplification of ultrashort pulses are discussed. Novel concepts to overcome limitations due to nonlinear effects are presented.Micromachining with ultrafast lasers has grown into an intensive research topic during the past ten years. Various applications have been explored and several advantages of this technology have been demonstrated, however, for the majority of real-world applications the achieved process throughput is still too low. Thus, one key element for a successful implementation of ultrafast laser technology in an industrial environment is a significant power increase of the laser sources.Fiber-based laser systems are appropriate candidates for power scaling since they are, in general, immune against any thermo-optical problems due to their geometry. The excellent heat dissipation is due to the large ratio of surface-to-active volume. In addition, the beam quality of the guided mode is determined by the fiber-core design and is therefore power independent.Moreover, due to the confinement of both the laser and pump radiation, a high intensity is maintained over the entire fiber length. As a consequence the product of pump-light intensity and interaction length with the laser radiation in the gain medium, which determines the gain, can be orders of magnitude higher in fibers [1] than in other bulk solid-state lasers. This leads to a highly efficient operation of fiber-laser systems, with very high gain and low pump threshold values. Additionally, the complete integration of the laser process leads to the inherent compactness and long-term stability of fiber lasers, because no components are necessary in a long free-space cavity.Ytterbium-doped fiber-laser systems are especially interesting for highpower ultrashort pulse generation and amplification. The fundamental requirement for broad-bandwidth short-pulse amplification, a broad emission spectrum, is fulfilled. In ytterbium-doped glass fibers the amplification bandwidth is approximately 40 nm [2,3], which supports pulses of durations as low as 30 fs. Due to the low quantum defect level of less than 10% Yb-doped fibers can provide optical-to-optical efficiencies well above 80% [4] and have an inherent low thermal load. Moreover, excited-state absorption of pump