Since the discovery of superconductivity in MgB2 considerable progress has been made in determining the physical properties of the material, which are promising for bulk conductors. Tunneling studies show that the material is reasonably isotropic and has a well-developed s-wave energy gap (∆), implying that electronic devices based on MgB2 could operate close to 30K. Although a number of groups have reported the formation of thin films by post-reaction of precursors, heterostructure growth is likely to require considerable technological development, making single-layer device structures of most immediate interest. MgB2 is unlike the cuprate superconductors in that grain boundaries do not form good Josephson junctions, and although a SQUID based on MgB2 nanobridges has been fabricated, the nanobridges themselves do not show junction-like properties. Here we report the successful creation of planar MgB2 junctions by localised ion damage in thin films. The critical current (IC) of these devices is strongly modulated by applied microwave radiation and magnetic field. The product of the critical current and normal state resistance (ICRN) is remarkably high, implying a potential for very high frequency applications.