We report the first experiential observation and theoretical analysis of the new phenomenon of planar chiral circular conversion dichroism, which in some aspects resembles the Faraday effect in magnetized media, but does not require the presence of a magnetic field for its observation. It results from the interaction of an electromagnetic wave with a planar chiral structure patterned on the sub-wavelength scale, and manifests itself in asymmetric transmission of circularly polarized waves in the opposite directions through the structure and elliptically polarized eigenstates. The new effect is radically different from conventional gyrotropy of three-dimensional chiral media.Since Hetch and Barron [1] and Arnaut and Davis [2] first introduced planar chiral structures to electromagnetic research they have become the subject of intense theoretical [3,4] and experimental investigations with respect to the polarization properties of scattered fields [5,6,7]. It was understood by many that planar chirality is essentially different in symmetry from threedimensional chirality. Whereas in three-dimensional chiral structures the sense of perceived rotation remains unchanged for opposing directions of observation (think, for example, of a helix observed along its axis), planar chiral structures possess a sense of twist that is reversed when they are observed from opposite sides of the plane to which the structure belongs. Consequently, if planar chiral structures were to exhibit a polarization effect (due to this twist) for light incident normal to the plane, the sense of the effect would be reversed for light propagating in opposite directions. Such behavior has never been observed before, but if proven would be of profound benefit to the development of a new class of microwave and optical devices.In this paper we report such a polarization sensitive effect. It is a previously unknown fundamental phenomenon of electromagnetism that asymmetric materials can generate behaviors that in some ways resemble the famous non-reciprocity of the Faraday effect, which emerges when a wave propagates through a magnetized medium. However, the phenomenon reported here does not require the presence of a magnetic field and results from an electromagnetic wave's transmission through a chiral planar structure patterned on the sub-wavelength scale. Both in the Faraday effect and in that produced by planar chirality, the transmission and retardation of a circularly polarized wave are different in opposite directions. In both cases the polarization eigenstates, i.e. polarization states conserved on propagation, are elliptical (circular).There are also essential differences between the two phenomena. The asymmetry of the Faraday effect with respect to propagation in opposite directions applies to the transmission and retardation of the incident circularly polarized wave itself. The planar chirality effect leads to the (partial) conversion of the incident wave into one of opposite handedness, and it is the efficiency of this conversion that is as...