Subject classification: 78.20.Ls; S8.13The Faraday rotation of CdTe single crystals doped with Eu, Gd, Dy rare earth elements has been studied. The largest enhancement of the Faraday rotation near the fundamental absorption edge has been found for the case of dysprosium dopant. At liquid helium temperature the Verdet constant of CdTe : Dy with concentration N Dy = 10 20 cm --3 is two orders of magnitude larger than the values for pure CdTe. At room temperature, the sign of the Faraday rotation changes depending on photon energy and impurity concentration. Tending towards saturation effects has been found in the magnetic field dependence of the Faraday rotation. All observed features in spectral, concentration, temperature and magnetic field dependence of the Faraday effect in CdTe : Dy crystals suggest a strong spin exchange interaction between f electrons of rare earth ions and s, p band carriers.