The effect of magnetic field on the free induction in NO2 was studied. The experiments were performed using the Free Electron Laser in the terahertz frequency domain. A magnetic field affects the free induction decay in two ways. First, it reduces the integral intensity of the free induction radiation. Second, application of the magnetic field results in the rotation of the polarization of the free induction radiation. Both effects were observed experimentally as well as simulated numerically using a theoretical model. A large angle of the polarization plane rotation was observed upon application of magnetic field of 120 G. (C) 2016 Elsevier B.V. All rights reserved.