We report on the measurements of magnetically assisted dispersion and gain in a Zeeman degenerate two-level system associated with the closed D 2 hyperfine transition Fg=3→Fe=2 cold cesium atoms. We use a Mach–Zehnder interferometer to measure the dispersive properties of this system in the presence of a magnetic field, transversal to the quantization direction, when the atomic system is excited by a coupling and probe beams with orthogonal polarizations. We have measured the spectrum of the refraction index for different magnitudes of the external magnetic field and different coupling beam intensities. A previously published theoretical model, using a simpler atomic transition Fg=1→Fe=0 , accounts reasonably for the experimentally observed gain and dispersive lineshapes.