This paper presents the design and experimental results of a long cavity length Nd:YAG laser with a large stable zone for water jet-guided laser (WJGL) applications. The design is based on the light transmission matrix and resonator stability conditions, aiming to achieve a large stable zone and a short cut-off thermal focal length (CTFL). A folded concave resonator is researched to enhance the cavity length, and the influence of the tunable cavity arm length on the oscillating beam in the resonator and in the YAG crystal is theoretically studied. Moreover, the effects of the output mirror curvature and the cavity arm length on the range of the stable area and the cut-off thermal focal length are also investigated. Experimental results show that a stable green laser output is obtained after second harmonic generation (SHG) with a pulse width ranging from 43 to 143 ns within the laser operating frequency range of 5–20 kHz. At an operation frequency of 10 kHz, the output power is 21.33 W, and the instability of the output power within 400 min is 0.88%. The laser source achieves a maximum power of 25.7 W at 20 kHz, and the maximum single pulse energy reaches 2.7 mJ at 6 kHz. Finally, this is used as the laser source to couple with a water jet with a diameter of 100 microns, achieving a lossless water conductivity transmission over 60 mm length. These results demonstrate the suitability of the designed laser source for WJGL technology research. In precision machining applications, this technology exhibits processing advantages of low thermal damage (~2 μm) and large depth (>10 mm), for 7075 aluminum alloy.