A Yb:YAG-derived silica fiber was fabricated by a molten-core fabrication method, in which a Yb:YAG crystal was used as the core material and a silica tube was used as the cladding material. The fiber's transmission loss was measured to be 0.49 dB/m at 1.55 µm, using a cut-back method. The fiber microstructure image showed that the cladding region was a uniform glass structure, while the core structure was amorphous. An all-fiber-integrated cladding-pumped laser based on Yb:YAG-derived silica fiber was demonstrated. With an incident pump power of 28 W, an output power of 6 W was obtained at 1.06 μm, with a slope efficiency of 21.7%.