In this study, the damping properties of PDMS composite enhanced by last generation siloxane dendrimer alcohol with hydroxyl terminal groups G3-OH were evaluated by all atomic molecular dynamics simulation (AAMDS) method in terms of damping loss factors (DLFs) tanδ, compositional miscibility (|δi−δ0|), cohesive energy density (CED), binding energy (EB) and maximum free volume fraction (FFVmax). Based on the total atomic charge distribution, further, the potential damping mechanism in composite PDMS/G3-OH(100/47) was explored. The simulation results showed that the |δi−δ0| of composite PDMS/G3-OH(100/47) was 0.0939 (J/cm3)0.5, whose good compatibility between the two components laid a solid foundation for the excellent damping performance. As the argument, the tanδ, CED, EB and FFVmax of composite PDMS/G3-OH(100/47) were 0.8073, 1.668 (J/m3)×108, −19877.607 kcal/mol as well as 39.85 % respectively, which were better than 1.2439, 1.390 (J/m3)×108, −14539.327 kcal/mol and 40.71 % of pure PDMS matrix material PDMS/G3-OH(100/0). Furthermore, the multiple hydrogen bond mechanism can perfectly explain the structure-activity relationship between the internal structure and the excellent damping properties of composite PDMS/G3-OH(100/47). Specifically, a total of 19 α-type hydrogen bonds were formed in the composite PDMS/G3-OH(100/47). All in all, according to the evaluation of AAMDS method, the PDMS composite enhanced by 47-equivalent last generation siloxane dendrimer alcohol with hydroxyl terminal groups G3-OH had outstanding damping properties.