An improved optical isolator of the type having an input optical fiber, a first GRIN lens, a first polarizer, a optical rotator, a second polarizer, a second GRIN lens and an output optical fiber. Lithium niobate birefringent crystals are used for lowered costs and high performance. Improvements also include polishing the end of the input optical fiber at a slant and covering the end with a window coated with antireflection material. The surface of the GRIN lens facing the end of the input optical fiber is slant-polished reciprocally and spaced apart with gap which avoids Fabry-Perot interference.