Muon spin-rotation experiments ͑supported by magnetization measurements͒ have been carried out in the canonical 4f mixed-valence narrow-gap semiconductor SmS from 10 to 900 K in magnetic fields up to 3.5 T. A bound state of an electron around a positive muon is found to form up to about 800 K. This state is a magnetic polaron: the electron wave function is confined within R Ϸ 0.5 nm ͑the first two coordination spheres͒ due to its exchange interaction with Sm magnetic moments. As such, it may serve as a model system for the hypothetical bound state suggested to account for a transition from divalent Sm 2+ to trivalent Sm 3+ , which is invoked to explain the transformation of SmS from a paramagnetic insulator into a magnetic metal at high pressure.The problem of spin and charge fluctuations close to a magnetic instability in mixed-valence ͑MV͒ systems has attracted considerable attention ͑see, e.g., Ref. 1 and references therein͒. In strongly correlated 4f electron systems, the class of MV materials known as narrow-gap semiconductors or Kondo insulators ͑SmB 6 , YbB 12 , TmSe, etc.͒ supports hybridization between localized 4f states and itinerant 5d-6s states causing instabilities in charge and magnetic configurations. These materials have been studied for almost four decades 2 but the mechanism of the valence fluctuation remains mysterious. Among them, the canonical MV system SmS makes an ideal material in which to study charge fluctuations in the vicinity of a quantum critical point because of the relative ease with which the Sm ion changes its ion charge state. Although a consensus has been reached that the remarkable properties of SmS may be understood in terms of a Sm 2+ ͑4f 6 ; J =0͒ → Sm 3+ ͑4f 5 ; J =5/ 2͒ + e͑d , s͒ transition, 3 the mechanism of the electron capture/release remains a subject of current interest.Unlike classical magnetic semiconductors ͑Eu chalcogenides, magnetic spinels, etc.͒ which experience metalinsulator transitions ͑MIT͒ close to the magnetic ordering temperature 4,5 at ambient pressure SmS remains a paramagnetic semiconductor within a NaCl crystal structure down to low temperature. 2 As the pressure is increased, SmS exhibits two successive phase transitions. First it undergoes an isostructural transition at the remarkably low pressure of p BG Ϸ 0.65 GPa ͑at room temperature͒, 6 involving a valence change from a Sm 2+ to a homogeneous mixed-valent ͑2.6-2.8͒ state. 2 This first-order phase transition is characterized by a huge volume collapse of up to 15% accompanied by a color change from black to golden. 7 In the black phase, the Fermi level E F falls into a gap between a 4f 6 level and an unoccupied 5d band, thus making Sm 2+ S 2− a nonmagnetic narrow-gap semiconductor. 8 In the golden phase, the 4f 6 level may be pushed into the conduction band, 8,9 resulting in a mix of divalent 4f 6 and trivalent 4f 5 configurations. In this phase the high-temperature resistivity is metallic but at low temperature the ground state is a strongly correlated semiconductor as long as the pressure i...