Liquid phase epitaxy (LPE) was used to grow LiY1-x-yLnxGdyF4 waveguides on LiYF4 (YLF) substrates. Gadolinium co-doping increased the difference in the refractive index of the layer and the substrate materials. Buried waveguides were obtained by growing an YLF cladding layer on top of either planar or linear waveguides. Mechanical processing allowed to fabricate a ridge-type waveguide. Laser operation was achieved for a buried LiY0.89Nd0.01Gd0.1F4 ridge waveguide end-pumped with a laser diode operating at 806.5 nm. In the case of buried LiY0.89Er0.01Gd0.1F4 layers strong upconversion luminescence was observed in low optical loss waveguides.