Preparation and characterization of dc SQUIDs based on YBa2Cu3O7/Ag/YBa2Cu3O7edge junctions is reported. The SQUIDs were preparedinsituby a multistepalllaser ablation deposition process. Since the Ag on YBa2Cu3O7was exposed to 730 °C in O2ambient, the barrier resistance was quite high, ∼0.6 &OHgr;. The SQUIDs showed voltage periodicity versus magnetic fieldH⊥up to ∼80 K and had a maximum response of 30 &mgr;V/&Fgr;0at ∼70 K, whereIcRNwas 30 &mgr;V. The SQUID response versusH⊥was superimposed on a diffractionlike pattern of its junctions, indicating an improved uniformity in the junction cross section. When the SQUID was exposed to microwave radiation, many pronounced Shapiro steps were observed in theI‐Vcurve, which modulated with the microwave power.