A new, laser supported, magneto-optic/eddy current imaging technique is introduced for fine defects testing beneath precision surface. In the experimental setup, the induction of eddy currents is conventionally performed by an alternating current excitation coil above the object surface. The magnetic field induced by the eddy currents is detected by using Faraday effect. For this target, a laser beam is passed through a special magneto-optic crystal integrated in the excitation coil. The polarization direction of laser beam is rotated in the crystal depending on the local magnetic field. The area distribution of rotation angle caused by the defects is transformed into “light” or “dark” picture using an optical setup, which comprises a conventional microscope, a lighting, a polarimeter, and a CCD sensor.