Recently, erbium-based lasers engineered to emit at the shorter 2.69 - 2.71 micrometers transitions have demonstrated desirable therapeutic results with tolerable thermal tissue damage in dental and ophthalmic applications. Moreover, transmission of the 2.69 um radiation through an ordinary low-OH silica fiber with acceptably low losses has been achieved. In addition to medical and dental applications, the 2.62 and 2.69-micrometers radiation from CrTmEr:YAG (CTE:YAG) is also suitable as a pump source for nonlinear materials in order to generate radiation in the 3 - 14 micrometers region. In the present work, stable and efficient room-temperature operation of a flashlamp-pumped CTE:YAG laser operating at the 2.69 micrometers transition is reported. The optimization of the dopant concentrations, the spectral characteristics of the resonator optics, and the AR coatings on the laser rod have resulted in a laser that emits radiation only at (lambda) equals 2.69 micrometers for incident pump energies as high as 250 J/pulse. In the free running mode, output energies approaching 1 J/pulse at a repetition rate of 4 - 6 Hz, and slope efficiencies of approximately 0.6% have been achieved. In the Q-switched regime, output energies of 35 - 50 mJ in the fundamental TEMoo mode have also been achieved.