The Kondo effect and ferromagnetism are the two many-body phenomena that emerge at the SrTiO3 interfaces with polar materials, but do not occur in bulk SrTiO3. By regarding the oxygen vacancy (OV) in SrTiO3 as a magnetic impurity, we show that these two interface specific phenomena can be attributed to the vacancies residing in the top TiO2 plane of SrTiO3. We identify three crucial ingredients the local orbital mixing caused by an OV, reduced symmetry at the interface, and strong in-plane stray electric field of the polar material. All three factors combine to result in the coupling between the impurity and conduction band at the interface, and can lead to both emergent phenomena. An OV-based Anderson impurity model is derived and solved using the numerical renormalization group method. The Kondo and Curie temperatures are estimated. Several experiments based on this interpretation are discussed.PACS numbers: 79.60. Dp, 71.27.+a Perovskite SrTiO 3 (STO) is a non-magnetic band insulator with a band gap of 3.2 eV [1, 2]. Its versatile response to different dopants makes STO an ideal host for building functional materials and has drawn significant attention.For example, an insulating ferromagnetic (FM) order at room temperature is observed in STO when replacing some Ti atoms by Co [3,4]. The band gap of STO can be engineered by Al doping [5]. When a small number of conduction electrons are introduced, even more fascinating phenomena such as superconductivity [6][7][8], long-lived magnetic moments [9], metallic ferromagnetism or super-paramagnetism (SPM, several separate macroscopic FM domains) [10][11][12][13][14][15], Kondo resistance minimum [16][17][18], and two-dimensional electron gas [19][20][21][22] emerge. Among these emergent phenomena, the ferromagnetism and Kondo effect are special in that they, unlike the superconductivity, only occur at the STO/LaAlO 3 (LAO) (for FM) [10][11][12][13]23], and STO/ionic liquid interfaces (for Kondo effect) [17,18, 24], but do not occur in the n-doped bulk STO [25][26][27][28][29][30]. In this letter, we investigate the role of oxygen vacancies (OV) in these two phenomena. We find the OV, residing in the top TiO 2 plane, plays an important role in distinguishing the interface behavior from the bulk. By regarding OVs in STO as magnetic impurities [31], we identify three crucial ingredients necessary for FM and Kondo effect to occur -(i) local orbital mixing at the adjacent Ti sites caused by an OV, (ii) symmetry reduction near the interface, and (iii) strong in-plane stray electric field induced by the polar interface. A combination of these three factors results in an impurity-conduction band coupling near the interface and can lead to the emergent FM phase and Kondo effect.We begin by summarizing the key features of an OV in STO from the density functional theory (DFT) [32][33][34][35][36][37][38].The conduction bands of bulk STO are mainly derived from Ti 3d orbitals, with triple-degenerate t 2g bands about 2.5 eV below the double-degenerate e g bands in energy. Whe...