High efficient laser operation based on the SPSed (spark plasma sintering) Nd:Lu2O3 ceramic was investigated in this paper. Laser performance of Nd:Lu2O3 samples before and after anneal were tested respectively, and results show that the samples after anneal have much better optical quality. When a linear cavity was used, the annealed Nd:Lu2O3 ceramic sample can output maximum power of 880 mW with a corresponding slope efficiency of 40%. When a V-shape cavity was used, annealed Nd:Lu2O3 ceramic sample can output maximum power of 1.25 W with a corresponding slope efficiency of 38%. The laser spectral lines at 1 076.7 nm and 1 080.8 nm oscillated simultaneously, but the thermal lensing effect limited the increase of output power of the Nd:Lu2O3 ceramic laser. Experimental results showed that the high optical quality Nd:Lu2O3 ceramic can be fabricated by the spark plasma sintering method.