The Faraday effect of magnetically doped Fe:InP with Fe concentration of 3 x 1016 cm-3 doping is characterized. It demonstrates a Verdet coefficient of 23.8 °/cm/T at 1550 nm. For 45°rotation, the insertion loss at this wavelength is 1.66 dB. A zero-birefringence waveguide is designed and fabricated. The loss and birefringence of the waveguide are characterized.© (2005) COPYRIGHT SPIE--The International Society for Optical Engineering. Downloading of the abstract is permitted for personal use only.