We propose and demonstrate a new saturable absorber based on a fiber taper embedded in a carbon nanotube/polymer composite. Greater than a 10% reduction in absorption (due to saturation) is directly measured for our saturable absorber. Using an embedded fiber-taper saturable absorber, we built an all-fiber mode-locked ring laser, which produces 594 fs/1.7 nJ pulses with a repetition rate of 13.3 MHz. (c) 2007 Optical Society of America.