A metal annular gasket comprising an annular metal base plate; a compound layer integrally laminated on both surfaces of the annular metal base plate, the compound layer being made of synthetic resin or a rubber material mixed with a fiber material; and an annular seal layer having a circumferential covering portion which covers the inner circumferential edge of the annular metal plate and the inner circumferential edge of both compound layers, the compound layer being made of synthetic resin or a rubber material. The annular seal layer is formed such that the surface of the annular seal layer is so connected to the surfaces of the compound layer as to provide smooth transition in its thickness direction.