Semiconductor electronics has so far been based on the transport of charge carriers while storage of information has mainly relied upon the collective interactions of spins. A new discipline known as spintronics proposes to exploit the strong mutual influence of magnetic and electrical properties in magnetic semiconductors, which promise new types of devices and computer technologies. The mechanism for such phenomena involves the concept of magnetic polarons—microscopic clouds of magnetization composed of charge carriers and neighboring magnetic ions—which determine most of the electrical, magnetic, and optical properties of the material. In spite of the importance of this quasiparticle, its observation remains a formidable challenge. Here we report that, using the positive muon as both a donor center and a local magnetic probe, we have been able to generate and detect the magnetic polaron and determine its size and magnetic moment in the magnetic semiconductor EuS.