We report a diode-pumped solid-state (DPSS) laser used for intracavity pump-enhanced difference frequency generation (DFG) to create a 3.5-micron laser. Using a 50 mm-long periodically poled lithium niobate (PPLN) crystal inside the cavity of an Nd:YVO4 solid-state laser at 1064 nm with 4.5 W pump power at 808 nm, and a 310 mW C-band signal at 1529 nm, up to 31 mW of mid-infrared output power at 3499 nm is obtained. The cavity requires no active stabilization and/or locking, and the entire cavity is <8 cm in length. The obtained output power corresponds to a black-box efficiency of 2.20%W−1, which is the highest value reported to date for continuous-wave DFG based on a bulk nonlinear optical crystal with no active stabilization. Potential future applications in free-space optical communication are also discussed.