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The Faraday effect is magnetic field-induced circular birefringence: opposite circular polarizations acquire different wave phases, rotating transmitted linear polarization. For a transparent medium with isotropy before applying the magnetic field, in the linear magnetic-response regime at fixed vacuum wavelength ${\lambda }_0$ and temperature $T$,Here $V$ is the Verdet constant, $L$ is the material path length, and $B_{\parallel }$ is the applied magnetic flux density component along the ray. This $\mathbf{B}$ is the external bias, distinct from the oscillating magnetic field of the light itself. Michael Faraday discovered the effect in 1845.^[ref]

Fix the sign before using the formula. On the forward path choose a right-handed Cartesian coordinate system, propagation along $+z$, and measure $\theta$ from $+x$ toward $+y$ for the electric field's oscillation line. Positive $\theta$ is counterclockwise in the $x$-right, $y$-up end view seen from $z>0$, looking toward the source. Then $B_{\parallel }=B_z$ and positive $V$ means positive rotation for positive $B_z$. This convention differs from the clockwise-positive convention in optical rotation. A linear polarization line is unchanged by $180^{\circ }$; a measured orientation determines accumulated rotation only modulo $\pi$, unless continuity selects a branch.

For uniform $B_{\parallel }$, the formula reduces to $\theta =VBL$. Its appeal is that a weak change of refractive index becomes a visible change of orientation. Magnetic reversal measurement of Faraday rotation turns this into an inference of $V$ or of the magnetic field path integral. Faraday rotation on a round trip explains the directional behavior used by an optical isolator. In an astronomical cold plasma, the high-frequency limit instead leads to the rotation measure law $\theta =\mathrm{RM}{\lambda }_0^2$; that wavelength dependence is not a universal law for transparent solids.

An optical isolator transmits light preferentially in one direction. An ideal Faraday effect device combines a $45^{\circ }$ rotator with polarizers at $0^{\circ }$ and $45^{\circ }$: forward light passes, while backward light acquires another $45^{\circ }$ rotation and reaches the entrance polarizer at $90^{\circ }$. See Faraday rotation on a round trip.

Optical nonreciprocity means that exchanging source and detector paths need not restore the corresponding transmission when external conditions, including the magnetic field, are held fixed. The Faraday effect gives a linear polarization rotation with the same laboratory sense on both traversals; see Faraday rotation on a round trip.