MR(Magneto-rheological) fluid is smart material that can be changed viscosity by controlling the magnetic field. MR damper with MR fluid can control damping force. It can be used extensively many engineering structures for reducing the effect of dynamic external disturbances. There are three kinds of MR dampers, such as valve mode, direct-shear mode and squeeze mode. In this study, design process of direct-shear mode MR damper with the MR fluid gap was developed. The parameters that used in the direct-shear mode MR damper Informed from the experiment of valve mode MR damper of Lord company. Magnetic analysis with finite element method was performed to find the optimal annular gap.