A linear ion source with magnetron hollow cathode discharge is described in this paper. The linear ion source is based on an anode layer thruster with closed-drift electrons that move in a closed path in the E×B fields. An open slit configuration is designed at the end of the ion source for the extraction of the linear ion beam produced by the magnetron hollow cathode discharge. The special configurations enable uninterrupted and expanded operation with oxygen as well as other reactive gases because of the absence of an electron source in the ion source. The ion current density and uniformity were experimentally evaluated. Using the ion source, surface modification was conducted on polyethylene terephthalate polymer films to improve the adhesion strength with ZnS coatings.