We present laser results obtained from a Dy³⁺-Tb³⁺ co-doped LiLuF₄ crystal, pumped by a blue emitting InGaN laser diode, aiming for generation of a compact 578 nm source. We exploit the yellow Dy³⁺ transition ⁴F(9/2)⇒⁶H(13/2) to generate yellow laser emission. The lifetime of the lower laser level is quenched, via energy transfer, to co-doped Tb³⁺ ions in the fluoride crystal. We report the growth technique, spectroscopic study, and room temperature continuous wave laser results in a hemispherical cavity at 574 nm, and with a highly reflective output coupler at 578 nm. A yellow laser at 578 nm is very relevant for metrological applications, in particular for pumping of the forbidden ¹S₀-³P₀ ytterbium clock transition, which is recommended as a secondary representation of the second in the international system of units.