A nanoparticle (NP) doping technique was developed for fabricating erbium (Er)- and holmium (Ho)-doped silica-based optical fibers for high energy lasers. Slope efficiencies in excess of 74% were realized for Er NP doping in a single mode fiber based master oscillator power amplifier (MOPA) and 53% with multi-Watt-level output in a resonantly cladding-pumped power oscillator laser configuration based on a double-clad fiber. Cores comprising Ho doped LaF3 and Lu2O3 nanoparticles exhibited slope efficiencies as high as 85% at 2.09 µm in a laser configuration. To the best of the authors' knowledge, this is the first report of a holmium nanoparticle doped fiber laser as well as the highest efficiency and power output reported from an erbium nanoparticle doped fiber laser.