We demonstrate that traveling-wave second-harmonic generation produces amplitude-squeezed light at both the fundamental and the harmonic frequencies. Quasi-phase-matched second-harmonic conversion efficiencies approaching 60% were obtained in a 26-mm-long single-mode LiNbO 3 waveguide with pulses from a modelocked laser at 1.53 mm. The amplitude noise of the transmitted fundamental field was measured to be 0.8 dB below the shot-noise level, and the generated 0.765-mm harmonic light was measured to be amplitude squeezed by 0.35 dB. The conversion-efficiency dependence of the observed squeezing at both wavelengths agrees with theoretical predictions. Waveguide losses appear to degrade the squeezing, but the maximum observed squeezing is currently limited only by the available input power