A mode-locked Nd:YAG laser capable of generating pulses substantially shorter than the present limit of 30-50 ps, while retaining the stability of active mode locking, would be a useful development. We present here a simplified theoretical analysis and a preliminary experimental verification of the use of an optical Kerr cell as a passive lossless pulse compressor inside a <tex xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">Q</tex> -switched and actively mode-locked YAG laser. The theoretical model indicates possible compression to as short as ∼5 ps in a typical low-power Nd:YAG laser. The preliminary experimental results show substantial pulse compression via the predicted mechanism, though still not below ∼30 ps. The technique appears capable, however, of pulse compression to substantially shorter values without the instabilities, statistical fluctuations, or energy losses associated with saturable-absorber mode locking.