This Letter describes a miniature Fabry–Perot, contactless, magneto-optic sensor for angular position measurement. The sensor utilizes a magneto-optic fluid comprising barium hexaferrite nanoplatelets that become birefringent in the presence of an external magnetic field and a compact fiber-optic sensor system for tracking the liquid’s optical axis direction. An efficient temperature compensation system is provided which allows the use of otherwise highly temperature-sensitive magneto-optic liquids. An unambiguous measurement range of 90° and a resolution of better than 0.05° are demonstrated experimentally.