The electro‐optic (EO) characteristics of the strip‐loaded outdiffusion guide (SLOG) [1] are presented. A Mach‐Zehnder interferometer using the SLOG technique is fabricated for test. The results show that the EO effect is greatly enhanced and the extinction ratio is also larger compared to those made by the conventional titanium indiffusion technique. Moreover, the fabrication takes less time, yet the waveguide has no surface guide and less damage. Experimental and computer‐simulated results are also shown for comparison. © 1992 John Wiley & Sons, Inc.