We generated narrowband pairs of nearly identical photons at a rate of 5 × 10⁴ pairs per second from a laser-cooled atomic ensemble inside an optical cavity. A two-photon interference experiment demonstrated that the photons could be made 90% indistinguishable, a key requirement for quantum information-processing protocols. Used as a conditional single-photon source, the system operated near the fundamental limits on recovery efficiency (57%), Fourier transform–limited bandwidth, and pair-generation-rate–limited suppression of two-photon events (factor of 33 below the Poisson limit). Each photon had a spectral width of 1.1 megahertz, ideal for interacting with atomic ensembles that form the basis of proposed quantum memories and logic.