We report an experimental demonstration of diffraction of He atoms fr
om a magneto-optical grating. The grating was produced by the interact
ion of three-level atoms with a light field of spatially varying polar
ization and a magnetic field. For a light shift matched to the Zeeman
shift, a two-peaked diffraction pattern was observed, corresponding to
a momentum splitting of 42HBARk. The effect of changing the polarizat
ions of the light field was investigated. The diffraction from the mag
neto-optical grating is compared directly with the diffraction of two-
level atoms from a standing light wave and it is shown that the magnet
o-optical interaction leads to more efficient coupling into high order
momentum states.