A low-cost medium power carbon dioxide (CO₂) laser system is designed, constructed, and characterized to produce coherent, monochromatic laser radiation in the Infrared region. The laser cavity is simulated and designed by using ZEMAX optic studio. A switch-mode high tension pump source is designed and constructed using a flyback transformer and simulated using NI Multisim to study the voltage behavior at different node points. A prototype cooling system/chiller is designed and built using the Thermo-Electric Coolers (TEC) to remove the excess heat produced during laser action. Various parameters, like pumping mechanism, chiller stability, efficiency, output power, and current at different applied voltages, are studied. The chiller efficiency at different output powers of the laser is analyzed, which clearly shows that the chiller's cooling rate is good enough to compensate for the heat generated by the laser system. The center wavelength of the carbon dioxide laser is 10.6μm with FWHM of 1.2nm simulated in the ZEMAX optic studio. The output beam penetration through salt rock (NaCl), wood, and acrylic sheet at various output powers is analyzed to measure the penetration depth rate of the CO₂ laser.