Laser action of XeF has been obtained in atmospheric‐pressure mixtures of 0.1% NF3, 0.4% Xe, and 99.5% Ar with electron‐beam‐controlled discharge pumping. The mean discharge current and voltage were 75 A/cm2and 11 kV/cm, respectively, at 4 atm total pressure. The high‐energy E‐beam current was 12 A/cm2. Mechanisms for creating XeF* in a discharge are discussed. Physical processes which limit the intrinsic efficiency to 0.3% in the present device are also discussed.