In a driven atom-cavity coupled system in which the twolevel atom is driven by a classical field, the cavity mode which should be in a coherent state in the absence of its reservoir, can be squeezed by coupling to its reservoir. The squeezing effect is enhanced as the damping rate of the cavity is increased to some extent. 42.50.Lc, 42.50.Dv, A quantum-mechanical harmonic oscillator undergoes continuous amplitude fluctuation even in its ground state. This fluctuation, also known as the vacuum fluctuation, arises from the nonvanishing commutation relation, [a, a † ] = 1, where a (a † ) is the annihilation (creation) operator of the harmonic oscillator. One can make, however, the fluctuation of one quadrature amplitude decrease below the vacuum-state (or the coherent state) level at the cost of that of the other quadrature.This mechanism, known as squeezing [1], is most commonly generated by the inherent nonlinearity of the interaction involved, which is seen from the definition of the squeezing operator S(r) = exp[(r/2){(a † ) 2 − a 2 }], r being the squeezing parameter. Squeezing mechanism may thus be interpreted as making pairs of correlated oscillator quanta. In most cases, the oscillator is inevitably damped by its coupling to the reservoir, and the squeezing is degraded since the coupling introduces the reservoir fluctuations to the oscillator. For instance, the known schemes for generating the squeezed light employ the nonlinear processes [2] such as parametric amplification [3] or four-wave mixing [4]. Usually, the interacting medium is put inside an optical cavity in order to build up the field by increasing the interaction time [3]. But the cavity damping destroys the quantum correlation of the field via loss of the correlated photon pairs.In the conventional squeezing schemes, therefore, damping has been considered to play a negative role. In this work, by contrast, we show that squeezing is manifested by damping in a counter-intuitive way, when the cavity is coupled to its reservoir under indirect pumping. The coupling strengths to each mode of the reservoir oscillators are related to the damping rate, κ, of the cavity mode by the fluctuation-dissipation theorem [5]. We will show that the squeezing effect is enhanced as κ is increased to some degree.In our model, the target harmonic oscillator, i.e., the cavity mode, is coupled to a two-level atom driven by a resonant classical field, instead of being pumped directly.Although the system has the inherent nonlinear property due to the saturability of the two-level atom, the nonlinearity producing the squeezing effect does not reveal itself without the cavity damping. In addition, the unconventional features of the squeezing enhancement by damping can be seen from its characteristic condition 2Ωκ/g 2 ∼ 1, where g is the atom-cavity coupling constant and Ω, the Rabi frequency of the driving field. This condition shows that the Rabi frequency should be inversely proportional to the cavity damping rate for the optimal squeezing. This relation is in a strikin...