A square complex matrix is a unitary matrix when , so it preserves the Euclidean norm. If with , then , giving . For a Hermitian matrix and ,
because the numerator equals its complex conjugate. Hence no eigenvalue of is zero, proving it is invertible.
For , the Hermitian conjugate is . The factors and their inverses commute, since they are rational functions of . Thus . Its action on the same eigenvectors is
These eigenvalues have modulus one. This is the Cayley transform of a Hermitian matrix in the convention that avoids the unitary eigenvalue one.
For the inverse direction, gives
Taking the conjugate transpose of therefore yields
The last equality uses commutativity of the two factors. This proves that the inverse Cayley transform of a unitary matrix without eigenvalue one is Hermitian. Solving for gives . An orthonormal eigenbasis of therefore diagonalizes , with diagonal entries .
The result extends even when a unitary matrix has eigenvalue one: choose so that does not. There are only finitely many forbidden phases, since the matrix has finitely many eigenvalues. Diagonalizing also diagonalizes in the same basis. Thus every unitary matrix is unitarily diagonalizable.