We report on the continuous-wave (CW) and mode-locked (ML) laser performance of an Yb3+-doped yttrium-gadolinium orthoaluminate crystal, Yb:(Y,Gd)AlO3. Pumping by a single-transverse-mode fiber-coupled 976 nm InGaAs laser diode, the maximum output power in the CW regime amounted to 429 mW at 1041.8 nm corresponding to a slope efficiency of 51.1% and a continuous wavelength tuning across 84 nm (1011-1095 nm) was achieved. The self-starting ML operation of the Yb:(Y,Gd)AlO3 laser was stabilized by a semiconductor saturable absorber mirror. Soliton pulses as short as 43 fs were generated at 1052.3 nm with an average output power of 103 mW and a pulse repetition rate of ∼70.8 MHz. To the best of our knowledge, our result represents the first report on the passively mode-locked operation of a Yb:(Y,Gd)AlO3 laser, and the shortest pulse duration ever achieved from any Yb3+-doped orthorhombic perovskite aluminate crystals.