A polarization beam splitter (PBS) based on a giant-reflection to zero-order (GIRO) grating is presented. The GIRO grating is a simple binary diffraction grating with parameters chosen such that the excited optical modes in the grating interfere constructively and destructively at the respective interfaces. This interference results in high-zero-order reflection (>99%) with a high polarization-selective extinction ratio (+/-30 dB). The grating shows a low aspect ratio. The GIRO PBS is theoretically and experimentally shown to be an adequate PBS for use as an optical isolator in combination with a quarter-wave plate in a CO2-laser system.