Despite its widespread use in laser lithotripsy, the Ho:YAG solid-state laser suffers from limited parameter combinations, poor beam quality, and low photoelectric conversion efficiency. The development of 2.0 μm fiber laser technology has positioned the thulium-doped fiber laser (TFL) as a superior alternative to the Ho:YAG laser in lithotripsy. The TFL excels because of its high-water absorption coefficient, all-fiber structure and pump modulation flexibility. However, the peak power reported for TFL in lithotripsy remains at most 500 W. This study presented a quasi-continuous wave (QCW) TFL featuring a wide tunable range of pulse width and pulse repetition rates, and a peak power of 700 W to realize enhanced ablation efficiency. A high-speed camera was used to acquire the laser-induced cavitation bubble images for the analysis of the interaction mechanism of a high peak power QCW TFL pulse with water and stones. While the synergistic action of photothermal and photomechanical effects constituted the mechanism of TFL lithotripsy, the laser-induced bubble channel was a prerequisite for TFL noncontact effective lithotripsy, with bubble length and width markedly influencing stone ablation rates. Ablation experiments on uric acid and calcium oxalate monohydrate stones conducted with various parameter combinations at a peak power of 700 W yielded rates of 8.9 mg/s for uric acid stones and 7.5 mg/s for calcium oxalate monohydrate stones. A comparison with prior findings confirmed that a high peak power TFL could notably improve stone ablation rates.