Abstract: A device providing an inertially stabilized laser beam as an optical reference. The device consists of a base and a small stabilized optical platform that emits the laser beam. The platform connects to the base through a mechanical flexure that allows relative motion in two axes. High-bandwidth angular rate sensors affixed to the platform measure platform motion in inertial space. Linear displacement sensors measure relative motion between base and platform. A closed-loop control system accepts these sensor measurements and command actuators that null the sensed platform motions, maintaining the optical platform fixed in inertial space. The digital controller implements a Sensor Blending Kalman Filter that blends high frequency signals from the platform with low frequency signals from a DC sensor (gyroscope) external to this device but affixed to the common base. The controller enables both stabilization of the laser beam and commanded pointing of the beam in inertial space.