The efficiency of the solid-state laser is one of the key technolygy in practice. The intrinsic efficiency of the Cr⁴⁺∶YAG solid-state laser as the absorption efficiency,quantum efficiency,storage efficiency and extraction efficiency has been discussed in this paper. The absorption cross section,the stimulated emission cross section,the high energy level lifetime and the dopant ion concentration of the Cr⁴⁺∶YAG crystals would obviously affect the intrinsic efficiency of this laser. The efficiency of the Cr⁴⁺∶YAG solid-state laser will be largely improved when the optical quality and the dopant concentration in the Cr⁴⁺∶YAG crystals are increased and when the operated wavelength of pump and the design of the Cr⁴⁺∶YAG laser cavity is optimized.