We report the first pulsed laser operation of an Indium-modified Yb:KY(WO4)2 crystal. Indium incorporation enlarges the broadening of the Yb3+ optical bands, reduces crystal lattice parameters and increases np refractive index. A KY0.8In0.07Yb0.13(WO4)2 crystal pumped at 981 nm with a Ti-sapphire laser in a SESAM modulated resonator produces at 300 K self-starting and stable mode-locking. The shortest laser pulses achieved were centred at λ = 1041.1 nm, have a duration of 96 fs with average power of 134 mW and repetition rate of 103.5 MHz (1.3 nJ/pulse).