<p>Magneto-optical (MO) metamaterials are a new degree of freedom in the modern technologies due to their pivotal role in paving way for appealing applications. In this paper, a new type of metamaterial composed of plasma and ferrite layers is proposed, and based on the matrix method and numerical calculations is characterized. It is identified that plasma-ferrite metamaterial (PFMM) exhibits a significant MO response with large polarization rotation angles and ellipticities in both reflection and transmission geometries. In some cases, the peak values of the Faraday and polar Kerr rotation angles exceed 40 degrees and demonstrate high sensitivity to changes in external parameters. Moreover, cross-polarization conversion effect and its adjustability under the influence of the external magnetic field and plasma number density in the vicinity of magnetic resonance frequency are verified. The results reveal that such multifunctional structure can provide opportunities for developing compact high-performance MO devices.</p>