High-accuracy on-line wavelength stabilization is required for differential absorption lidar (DIAL), which is ideal for precisely measuring atmospheric CO(2) concentration. Using a difference-frequency laser, we developed a ground-based 1.57-μm pulsed DIAL for performing atmospheric CO(2) measurements. Owing to the system complexity, lacking phase, and intensity instability, the stabilization method was divided into two parts-wavelength calibration and locking-based on saturated absorption. After obtaining the on-line laser position, accuracy verification using statistical theory and locking stabilization using a one-dimensional template matching method, namely least-squares matching (LSM), were adopted to achieve wavelength locking. The resulting system is capable of generating a stable wavelength.