We report the frequency stabilization of an external cavity diode laser (ECDL) to a reference molecular iodine (I2) transition at 13,531.18 cm−1 (739.03382 nm). Using the Modulation Transfer Spectroscopy (MTS) method for the highly sensitive detection of weak absorption signals, the Doppler-free absorption peaks of I2 corresponding to the hot band transition R(78) (1–11) are resolved. The ECDL’s frequency is stabilized with respect to one of the lines lying within the reference absorption band. For this, the iodine vapor cell is heated to 450 °C and the corresponding circularly polarized pump and probe beam powers are maintained at 10 mW and 1 mW, respectively, to avoid power broadening. The short (100 ms) and long-term (50 h) linewidths of the frequency stabilized laser are measured to be 0.75(3) MHz and 0.5(2) MHz, respectively, whereas the natural linewidth of the specific I2-transitions lie within a range of tens of MHz.