A Faraday rotator and an optical isolator having a high transmittance and a high Verdet constant are provided. The optical isolator includes at least a Faraday rotator that rotates a polarization plane of incident light in a non-reciprocal manner, a polarizer disposed on a light incident side of the Faraday rotator, and an analyzer disposed on a light exit side of the Faraday rotator. The Faraday rotator is made of an oxide containing ytterbium oxide (Yb2O3), and is manufactured by a ceramic manufacturing process, wherein the oxide is allowed to contain an oxide of a metal other than ytterbium, and the proportion of ytterbium in all metal atoms in the oxide is 80% or more.