A high-power 880-nm diode-directly-pumped passively mode-locked 1342 nm Nd:YVO₄ laser was demonstrated with a semiconductor saturable absorber mirror (SESAM). The laser mode radii in the laser crystal and on the SESAM were optimized carefully using the ABCD matrix formalism. An average output power of 2.3 W was obtained with a repetition rate of 76 MHz and a pulse width of 29.2 ps under an absorbed pump power of 12.1 W, corresponding to an optical-optical efficiency of 19.0% and a slope efficiency of 23.9%, respectively.