Here, we report results on the magnetic and microwave properties of polycrystalline Y-type hexaferrite synthesized by sol-gel auto-combustion and acting as a filler in a composite microwave-absorbing material. The reflection losses in the 1–20 GHz range of the Y-type hexaferrite powder dispersed homogeneously in a polymer matrix of silicon rubber were investigated in the absence and in the presence of a magnetic field. A permanent magnet was used with a strength of 1.4 T, with the magnetic force lines oriented perpendicularly to the direction of the electromagnetic wave propagation. In the case of using an external magnetic field, an extraordinary result was observed. The microwave reflection losses reached a maximum value of 35.4 dB at 5.6 GHz in the Ku-band without a magnetic field and a maximum value of 21.4 dB at 8.2 GHz with the external magnetic field applied. The sensitivity of the microwave properties of the composite material to the external magnetic field was manifested by the decrease of the reflected wave attenuation. At a fixed thickness, tm, of the composite, the attenuation peak frequency can be adjusted to a certain value either by changing the filling density or by applying an external magnetic field.