Efficient diode-pumped passively Q-switched Er:Lu2O3 laser operation at 2.84 μm was realized. A few-layer MoS2 nanosheet film on a YAG substrate, was fabricated and employed as saturable absorber (SA) in a short plane-plane cavity. Under an absorbed diode laser pump power of 7.61 W, an average output power of 1.03 W was generated with a pulse duration of 335 ns and a repetition rate of 121 kHz, resulting in a pulse energy of 8.5 μJ.