Magneto-optic imaging (MOI) is an emerging hybrid imaging technique that innovatively generates two-dimensional images by combining electromagnetic and optical energies. It has been widely used in detecting surface and subsurface cracks and corrosion in aircraft skins for nondestructive testing purpose. The merits of the MOI that make it attractive include rapid and large-area inspection, insensitivity to liftoff variation, and easy interpretation in contrast to the complex impedance data of conventional eddy current inspections. The early instrument provides binary images of the anomalies based on eddy current induction techniques and an MO sensor using the Faraday's rotation effect. This chapter will give a comprehensive review on this relatively new sensing technology and discuss the recent advances on MOI including the development of novel optical sources and magnetic film materials for various applications, the integration of MOI sensors with automated systems, and the state-of-the-art post-processing algorithms.