AbstractTo detect the magnetic field using polarization of a light, transparent magnetic material having a Faraday effect is required. The Co‐MgF2 granular film is promising as a candidate of the Faraday element for the magnetic field sensing. In this study, Fabry–Pérot resonant structure was introduced into the Co‐MgF2 granular film to enhance the Faraday effect. It was found that the Faraday effect per unit film thickness [deg/μm] was enhanced due to a light localized in the Co‐MgF2 granular layer sandwiched by Bragg mirror of the insulator multilayer. The maximum Faraday effect of the proposed structure was −1.24°/μm, which was about 3.4 times enhancement compared with a single Co‐MgF2 film, when the number of layer period x in Fabry–Pérot resonant multilayer was 5, where the structure was substrate/(Ta2O5/SiO2)x/Co‐MgF2/(SiO2/Ta2O5)2/Air. Furthermore, the multicavity structure, consisting of the Fabry–Pérot resonant multilayer film continuously placed, exhibited a 50% increase of figure of merit (FOM) defined as Faraday rotation angle per transmission loss [deg/dB].