A neodymium-doped monomode fibre laser operating at 1.08 pm has been actively mode-locked usmg intracavity acousto-optic loss modulation. The mode-locked laser output consisted of a train of pulses of less than 1 ns FWHM with an energy of ∼ 17 pJ at a repetition rate of 41.45 MHz. When the laser was simultaneously Q-switched the peak power of the mode-locked pulses inside the 690 ns-wide envelope was enhanced by more than three orders of magnitude.