CW laser output is obtained using laser diode end-pumped polycrystalline transparent 10% Yb3+∶Y2O3 ceramic. The pump threshold is 5.6 W, the maximum output power of 5.48 W is obtained with the absorbed pump power 31.11 W, and the slope efficiency is as high as 25%. At the same time there is no saturation in laser experiment, so the higher power output of Yb3+∶Y2O3 ceramic can be obtained with laser diode of higher power. Therefore Yb3+∶Y2O3 ceramic is a potential laser material.