A novel magnetorheological (MR) hydrostatic guideway system for control of machining vibration is proposed. After the analysis of the relationship between correlation parameters and working variables, a computational fluid dynamics (CFD) model is presented. With this model incorporated into the commercial code FLUENT, a numerical study on performance parameters of MR hydrostatic guideway system is carried out efficiently. Static stiffness and damping coefficients are calculated by using dynamic mesh technique based on perturbation theory. Analysis on dynamic behaviors of the MR hydrostatic guideway under the action of machining force is performed. An experimental study has been undertaken in order to validate the accuracy of the numerical model. It is observed that working variables (magnetic flux density, initial pressure ratio and load ratio) have significant effects on the performance characteristics (flow rate, frictional force, stiffness and damping) of the system. Optimal static stiffness and high damping can be expected simultaneously. Dynamic stiffness of the system can be improved and vibration caused by machining force can be reduced remarkably by increasing magnetic flux density. It is effective to control machining vibration by applying MR hydrostatic guideway system.