Abstract: We describe a compact dual-wavelength (1.047 and 1.053 μm) diode end-pumped Q-switched Nd:YLE laser source which has a number of applications in demand. In order to achieve its dual-wavelength operation it is suggested for the first time to use essentially nonmonotonous dependences of the threshold pump powers at these wavelengths on the cavity length in the region of the cavity semiconfocal configuration under a radius of the pump beam smaller than the radius of the zero Gaussian mode. Here we demonstrate one of the most interesting applications for this laser: difference frequency generation in a GaSe crystal at a frequency of 1.64 THz. A superconducting hot-electron bolometer is used to detect the THz power generated and to measure its pulse characteristics.