We report for the first time on laser action of a diode-pumped Yb:BaY(2)F(8) crystal. Both CW and femtosecond operations have been demonstrated at room-temperature conditions. A maximum output power of 0.56 W, a slope efficiency of 34%, and a tunability range from 1013 to 1067 nm have been obtained in CW regime. Transform-limited pulse trains with a minimum duration of 275 fs, an average power of 40 mW, and a repetition rate of 83 MHz have been achieved in a passive mode-locked regime using a semiconductor saturable absorber mirror.