In this study, hollow poly (O-phenylenediamine-co-O-toluidine) (POPD-co-OT) was synthesized via oxidative polymerization reaction. The POPD-co-OT was decorated into polystyrene surface core spherical particles before removing the core to obtain the hollow particles. The chemical structure and morphology of the conducting POPD-co-OT were studied with FTIR spectroscopy, proton NMR, scanning electron microscopy, and TEM. The hollow particles were applied in the dispersion phase for the preparation of electrorheological fluid (ERF). The rheological properties were investigated with a rotational rheometer, whereas the chain formation inside the ERF was observed using OM. The experimental results indicated that the shear stress of ERF increased with increasing strength of the electric field and quickly responded by impacting the external electric field strength. The ERF system is quite stable for a long time up to 200 h.