Magneto Rheological Fluid (MRF) damper has been opted as a promising semi active element of advanced suspension system. This work focuses on the damping nature of magnetorheological fluid under the influence of a magnetic field strength, size and shape of the of the iron oxide particles. A reduced scale single degree of freedom quarter car model with two stage magnetorheological damper, viscosity measurement setup, synthesized and commercially available Fe2O3 powders are used for the experimental study. An air cooled electro-dynamic shaker, Data acquisition system, accelerometers and the Lab view software acquires and analyzes the response of the quarter car model. X-ray Diffraction and Scanning electron microscopy characterize the morphology of iron oxide particles. The vertical acceleration, the displacement, the transmissibility ratio and the damping characteristics are analyzed based on the response of the top plate at different frequencies of base excitation. The results show that the magnetorheological fluid made with nano iron oxide powder has better damping characteristics than that of micron sized iron oxide powder