An optical circuit element capable of preventing stray light propagated through a part including a substrate of the optical circuit element from being emitted to the outside is provided. The optical circuit element has a substrate, an optical waveguide layer that is formed on one surface of the substrate, and a protective layer that is overlaid on the optical waveguide layer. The optical waveguide layer has an optical waveguide configured for light to be propagated therethrough. A groove portion, which reaches to a position deeper than the one surface from a surface of the protective layer toward the substrate, is formed. The optical circuit element further includes a light absorption layer that covers at least a bottom surface and a side surface of the groove portion.