This paper newly proposes a hollow ferrite waveguide which consists of a microstrip line loaded on two ferrite slabs with adjacent air gap. Dispersion relation of magnetostatic surface wave in the waveguide is derived by the two dimensional analysis, and reciprocal behavior for parallel bias magnetic field and nonreciprocal behavior for antiparallel bias magnetic field are shown. Propagation characteristic of magnetostatic surface wave in the hollow ferrite waveguide are experimentally demonstrated under both parallel and antiparallel bias magnetic field directions. Strong nonreciprocal behavior in the hollow guide was found for case of antiparallel bias field configuration. These experimental results are mostly in agreement with the dispersion diagram. A nonreciprocal four port junction is demonstrated as an application of the hollow ferrite waveguide.