A method for manufacturing a magneto-resistive device. The magneto-resistive device is for reducing the deterioration in the characteristics of the device due to annealing. The magneto-resistive device has a magneto-resistive layer formed on one surface side of a base, and an insulating layer formed of two layers and deposited around the magneto-resistive layer. The layer of the insulating layer closest to the base is made of a metal or semiconductor oxide. This layer extends over end faces of a plurality of layers made of different materials from one another, which make up the magneto-resistive device, and is in contact with the end faces of the plurality of layers with the same materials.