We demonstrate on-chip light amplification with integrated optical waveguide fabricated on erbium-doped thin film lithium niobate on insulator (TFLNOI) using the photolithography assisted chemo-mechanical etching (PLACE) technique. A maximum internal net gain of 18 dB in the small-signal-gain regime is measured at the peak emission wavelength of 1530 nm for a waveguide length of 3.6 cm, indicating a differential gain per unit length of 5 dB/cm. This work paves the way to the monolithic integration of diverse active and passive photonic components on the TFLNOI platform.