We report the anisotropic magnetic properties of the ternary compound ErAl$_2$Ge$_2$. Single crystals of this compound were grown by high temperature solution growth technique,using Al:Ge eutectic composition as flux. From the powder x-ray diffraction we confirmed that ErAl$_2$Ge$_2$ crystallizes in the trigonal CaAl$_2$Si$_2$-type crystal structure. The anisotropic magnetic properties of a single crystal were investigated by measuring the magnetic susceptibility, magnetization, heat capacity and electrical resistivity. A bulk magnetic ordering occurs around 4 K inferred from the magnetic susceptibility and the heat capacity. The magnetization measured along the $ab$-plane increases more rapidly than along the $c$-axis suggesting the basal $ab$-plane as the easy plane of magnetization. The magnetic susceptibility, magnetization and the $4f$-derived part of the heat capacity in the paramagnetic regime analysed based on the point charge model of the crystalline electric field (CEF) indicate a relatively low CEF energy level splitting.
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