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A compact frequency standard was constructed by stabilizing the frequency of a diode-pumped Nd:YAG laser to the Doppler-free spectrum of iodine at 532 nm. The performance of the laser and the stability and repeatability of the stabilization scheme were investigated. The dependence of the laser frequency on such parameters as pressure of the iodine cell, modulation amplitude, and pressure were also studied. The results show that by using standard third-harmonic locking technique stability and repeatability comparable to more elaborate iodine-stabilized Nd:YAG laser systems can be achieved in a portable, and relatively simple and inexpensive, setup.