The intermediate-valence compound SmB6 is a well-known Kondo insulator, in which hybridization of itinerant 5d electrons with localized 4f electrons leads to a transition from metallic to insulating behavior at low temperatures. Recent studies suggest that SmB6 is a topological insulator, with topological metallic surface states emerging from a fully insulating hybridized bulk band structure. Here we locally probe the bulk magnetic properties of pure and 0.5 % Fe-doped SmB6 by muon spin rotation/relaxation (µSR) methods. Below 6 K the Fe impurity induces simultaneous changes in the bulk local magnetism and the electrical conductivity. In the low-T insulating bulk state we observe a temperature-independent dynamic relaxation rate indicative of low-lying magnetic excitations driven primarily by quantum fluctuations.Topological insulators are exotic quantum states of matter characterized by an electrically insulating bulk and topologically-protected metallic surface states. Due to an interplay of strong correlations and strong spinorbit coupling of the 4f electrons, SmB 6 is predicted to develop a non-trivial Z 2 topological insulating state. 1 Angle-resolved photoemission 2 and point-contact spectroscopy 3 measurements show that the crossover from the bulk high-T metallic state to the low-T Kondo insulating phase occurs gradually over a fairly wide temperature range (30 K < T < 110 K). Transport measurements show that surface electrical conduction occurs below T ∼ 5 to 6 K with a resistance that saturates at lower temperature. 4-6 The low-T conduction arises from twodimensional states 7 that occur in the hybridization gap exclusively at the surface, 3,4,8 as expected for metallic surface states of topological origin. 9 Yet the ground state of SmB 6 is still unclear, in part because not all bulk properties at low T are that of a conventional band-gapped insulator. Despite the loss of bulk electrical conduction, quantum oscillations consistent with a bulk Fermi surface have been observed, 10 and the low-temperature specific heat exhibits a significant bulk residual T -linear term typical of a metallic state. 11 Recently, it has been argued that there is some residual bulk electrical conductivity in SmB 6 below 4 K. 12 There also exists significant bulk acconduction arising from low-energy states in the Kondo gap. 13Nuclear magnetic resonance (NMR) Knight shift and spin-lattice relaxation rate (1/T 1 ) measurements, 14 bulk magnetic susceptibility, 15 Raman spectroscopy, 16,17 and inelastic neutron scattering (INS) 18,19 studies of SmB 6 reveal the emergence of bulk in-gap bound states of a different origin below T ∼ 20-30 K. The sharp dispersive magnetic excitations observed at 14 meV within the hybridization gap by INS have been attributed to a bulk collective spin exciton resonance mode due to residual antiferromagnetic (AFM) quasiparticle interactions. 20,21 These bound magnetic quasiparticle states are robust due to the protection provided by the hybridization gap, and there is evidence that the spin excitons co...