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The Faraday effect due to the cyclotron resonance of conduction electrons in semiconductor InSb allows for nonreciprocity of transmitted light in our Faraday THz isolator operating in the presence of a small magnetic field. We select InSb as an efficient medium for our isolator due to its high electron mobility, low electron effective mass, and narrow band gap. Experimental measurements of the isolator performance indicate a maximum achieved isolation power of 18.8 dB with an insertion loss of −12.6 dB. Our optical analysis of the device points to a remarkablenonreciprocalFabry-Perot effect in the magneto-optical InSb layer as the origin of the multi-fold isolation enhancement. This nonreciprocity occurs as the Fabry-Perot reflections in the forward direction add constructively and enhance the transmittance at certain frequencies, while the Fabry-Perot reflections in the backward direction add destructively and suppress the transmittance at the same frequencies.