This work demonstrates a single mode fibre-step index multimode fibre-single mode fibre (SMS) structure as saturable absorber (SA) to generate Q-switched laser based on the Kerr-effect of multimode interference (MMI) in an Erbium-doped fibre laser (EDFL) cavity. A 156 mm length of step index multimode fibre (SIMF) was spliced directly into a ring cavity to modulate the cavity loss. By bending and applying proper pressure on the SIMF, steady Q-switched pulse was generated without strict length restriction of the SIMF. The Q-switched laser had a high repetition rate from 87 to 158 kHz, while the corresponding pulse width was low, ranging from 4.2 μs to 2.5 μs as the pump power increased from 115 to 342 mW. The signal-to-noise ratio (SNR) of the fundamental mode for the pulsed laser was about 67 dB at a central wavelength of 1530 nm. The experiment demonstrated that SMS structure can be used as stable SA to generate Q-switched laser for high power applications. It also indicated that even with large core diameter step index multimode fiber, SMS structure can be utilized to generate stable Q-switched pulsed laser with very simple cavity settings.