Optical second harmonic generation (SHG) in 75° reflection was studied on longitudinally magnetized PtMnSb(III) and magnetic circular dichroism was observed with SHG. For circularly polarized incident light of 532 nm it amounts to (7 ± I)%. For linearly polarized incident radiation this leads to a nonlinear magneto-optical Kerr rotation of (14±2) 0 • The strong symmetry-breaking effect of the magnetization is demonstrated by a 90° turn of the SH polarization ellipse with regard to the linear polarization of the fundamental light. PACS numbers: 78.20.Ls, 42.65.Ky Stimulated by theoretical and experimental progress as well as technological demands, magnetism of surfaces, alloys, thin films, and multilayer systems has recently received increased attention. Of primary interest are anisotropic effects which result from the distortion of the electronic charge distribution induced by the spin-orbit interaction. Examples are the existence of an electric field gradient in cubic crystals [!], anisotropic electric conductivity [2], magnetic dichroism in x-ray adsorption [3][4][5][6] and photoemission [7,8], and the Faraday and the magneto-optical Kerr effect (MOKE) [9, I 01. In this context it has been pointed out [11,12] and experimentally demonstrated [13,14] that optical second harmonic generation (SHG) is a technique particularly well suited for monitoring the symmetry reduction caused by magnetization. Although this technique is experimentally easy to handle under both normal and UHV conditions, it has up to now not received the attention that rhymes with its potential. The theory for the nonlinear magneto-optical Kerr effect (NOLIMOKE) has been worked out by H iibner and Bennemann [ 12], who predicted the spectral dependence of the nonlinear susceptibility for nickel. Aktsipetrov, Braginskii, and Esikov [13] studied SHG both in transmission and reflection on magnetized epitaxial Y2.sBio.sFe5012 films on an Y3Fes012 substrate. They reported a magneto-optical Kerr rotation between I o and 4°, dependent on film thickness but nevertheless significantly larger compared to the linear Kerr rotation. Reif eta/. [14] showed that SHG is a sensitive technique for detecting surface magnetism of ferromagnetic crystals in UHV. We are not aware of any reports on magnetic circular dichroism in SHG, although in analogy to magnetic circular x-ray dichroism [3-61, this quantity is expected to yield information about the occupation of spinup and spin-down states in the conduction band [ 12-151. It is the purpose of this Letter to demonstrate the influence of magnetization on SHG. The observed large effects on SHG in reflection are caused by two effects. First, with magnetic orderiny the symmetry of the nonlinear susceptibility tensor x 2 > is changed, compared to the nonmagnetic situation [II,13,161. Second, the strength of the spin-orbit interaction determines the size of the tensor components [ 12]. It also introduces the sensitivity to the magnetization direction with regard to the k vector of the incident light. To prove these ...