Optical and lasing characteristics of a rare‐earth‐doped nonlinear crystal, neodymium‐doped lithium tantalate (Nd:LiTaO3), have been studied. Continuous wave lasing lines at 1.092 and 1.082 &mgr;m with ordinary (&sgr;) and extraordinary (&pgr;) polarizations, respectively, have been observed by pumping near the 800 nm absorption region. The effects of annealing and poling of the crystal on the fluorescence spectrum, lifetime, and polarization are investigated. A comparative study of the slope efficiency and threshold for ordinary and extraordinary polarized lasing is also made. ©1995 American Institute of Physics.