The present invention relates to a magneto-optical ceramic material which is characterized by being configured of an oxide ceramic that is mainly composed of an oxide that is represented by formula (1): (TbxRe1-x)2O3 (wherein Re represents at least one element that is selected from among scandium, yttrium, lanthanum, europium, gadolinium, ytterbium, holmium and lutetium, and 0.4≦x≦1.0). The magneto-optical ceramic material is also characterized in that the difference between the refractive index at the grain boundary and the refractive index of the main phase of the oxide ceramic crystal at 25° C. is 0.004 or less. The present invention is capable of reliably providing a magneto-optical ceramic material for Faraday rotators of optical isolators and the like, said magneto-optical ceramic material having good polarization state and large extinction ratio, and enables size reduction of an optical isolator that is used for fiber laser for processing machines.