Faraday rotator or isolator with mode stripping ferrules and collimators having fiber pigtailed mode stripping components. An example is a compact Faraday Isolator module employing mode stripping ferrules and mode stripping collimators at the input and/or at the output of a fiber pigtailed Faraday Isolator. Two basic isolator types are a Polarization Independent Faraday isolator and a Polarization Maintaining Faraday isolator. The device is substantially immune to damage due to back-reflection, thermal lensing, energy leakage and absorption. Mode stripped optical energy propagating in the reverse direction is diverted onto a heat absorbing and heat sinking structure, as for example at the input of a compact birefringent wedge-based PI isolator. Alternatively, the optical energy propagating in the reverse direction is angularly refracted away from the forward incident beam path and is coupled into the energy dispersive cladding of the input fiber or the ferrule itself.