A method of manufacturing a magnetic memory device includes forming an insulation layer on a substrate, forming a lower electrode on the insulation layer, forming a magneto-resistive film on an upper surface of the lower electrode, the magneto-resistive film including an insulation barrier layer and a plurality of magnetic films stacked on both sides of the insulation barrier layer, stacking a mask layer on the magneto-resistive film, performing ion etching on the magneto-resistive film, using the mask layer as a mask, thereby forming a magneto-resistive element, forming an insulation film on upper surfaces of the mask, the magneto-resistive element and the lower electrode, and etching the insulation film with an ion beam such that a side surface of the magneto-resistive element is exposed.