Er3+ doped YbAl3(BO3)4 crystal with large absorption coefficient of 184 cm(-1) at pump wavelength of 976 nm is a promising microchip gain medium of 1.5-1.6 μm laser. End-pumped by a 976 nm diode laser, 1.5-1.6 μm continuous-wave laser with maximum output power of 220 mW and slope efficiency of 8.1% was obtained at incident pump power of 4.54 W in a c-cut 200-μm-thick Er:YbAl3(BO3)4 microchip. When a Co2+:Mg0.4Al2.4O4 crystal was used as the saturable absorber, 1521 nm passively Q-switched pulse laser with about 0.19 μJ energy, 265 ns duration, and 96 kHz repetition rate was realized.