Abstract: A magnetic rotary sensor has a rotary drum carrying thereon magnetically recorded codes representative of discrete positions obtained by dividing one rotation of the drum into a predetermined number of positions. Further, an interval between the adjacent discrete positions identified by the codes is interpolated by interpolation signals generated on the basis of a sine wave signal and a cosine wave signal, which are so produced by magnetic signals additionally recorded on the drum that the periods thereof correspond to the interval. Accordingly, a magnetic rotary sensor can be realized, which is capable of identifying the rotational positions of a rotating body with high resolution without increasing the rotary drum in size.