An inerter is a mechanical device that generates a resisting force proportional to the relative acceleration between its two terminals. Several inerter-based dampers have been developed and studied to protect critical structures from the damaging effects of strong earthquake events. However, under high-frequency excitations, conventional inerter-based dampers may generate high resisting forces, which can result in excessive stresses in the supporting members and degrade the performance of the isolation systems. To overcome this issue, a novel force-restricted inerter damper (FRID) is proposed in this study for use in base-isolated structures. A simplified mechanical model of the proposed FRID was developed, which consists of a parallel layout of a viscous damping element and a nonlinear inerter element with a friction force restriction mechanism. The nonlinear hysteretic behavior of the FRID is discussed with an emphasis on the frequency dependence. Time- and frequency-domain methods were developed to evaluate the nonlinear dynamic response of the FRID-controlled structure. The performance of the FRID was investigated and compared with that of commonly used fluid viscous dampers (FVDs) and viscous mass dampers, when incorporated into base-isolated structures under short- and long-period ground motions. Parametric studies were conducted to investigate the influence of the FRID’s characteristic parameters on the seismic performance of controlled structures. The analysis demonstrated that the viscous mass damper and FRID provided superior control than the FVD on the displacement of a base-isolated structure, and the FRID is more effective than the viscous mass damper in reducing the control force and structural acceleration. This confirms that the proposed FRID is a promising, high-performance, and cost-effective device for enhancing the resilience of seismically isolated structures.