We present the crystal growth, optical spectroscopy, and room temperature continuous-wave (CW) laser operation of monoclinic Ho:KLu(WO 4 ) 2 crystals. Macro defect-free crystals of several dopant concentrations were grown by top-seeded solution growth slow-cooling method. The evolution of unit cell parameters with holmium doping level and temperature was studied using X-ray powder diffraction. The spectroscopic properties were characterized in terms of room- and low-temperature optical absorption and photoluminescence. From low-temperature optical absorption measurements, the energy of the Stark levels was determined. Calculation of the emission and gain cross sections is presented. CW laser action was realized for 3 and 5 at. % Ho-doped KLu(WO 4 ) 2 by in-band pumping using a Tm:KLu(WO 4 ) 2 pump laser. A maximum output power of 507 mW with a slope efficiency of ~38 % with respect to the incident power was achieved at 2,080 nm with the Ho:KLu(WO 4 ) 2 laser.