The objective of this study is to evaluate in an animal model differences in wound healing and scar formation in healthy urethra and bladder neck incised with the Erbium:YAG and Holmium:YAG lasers. In each of 18 domestic pigs, three 1-cm-long incisions were made, two at the bladder neck and one in the mid-urethra using either the Er:YAG laser (9 pigs) or the Ho:YAG laser (9 pigs). In each laser group, three animals were sacrificed on postoperative (POD) days 0, 6, and 14. Width of collateral damage, as evidenced by coagulation necrosis and granulation tissue at the wound base, and incision depth were evaluated during tissue analysis. Collateral damage with the Er:YAG laser at POD 0, 6 and 14 was 20 ± 5 mm, 900 ± 100 mm, and 430 ± 100 mm, respectively. Damage with the Ho:YAG laser was 660 ± 110 mm, 2280 ± 700 mm, and 1580 ± 250 mm, respectively. The granulation tissue was significantly less (p < 0.05) at all time points with the Er:YAG laser. Similarly, incision depths for the two laser groups at days 6 (1100 ± 200 mm vs 1500 ± 300 mm) and 14 (670 ± 140 mm vs 1240 ± 140 mm) were also significantly less (p < 0.05) for the Er:YAG laser group, indicating faster healing of the wound created. In this in vivo animal study, incisions in the urethra and bladder neck made with the Er:YAG laser healed faster and with less scar formation than incisions made with the Ho:YAG laser.