Electrorheological(ER) fluid is a kind of smart material with variable shear stress and dynamic viscosity under various electric field intensity. Electric field can control the damping characteristics of ER damper. The objective of this study is the analysis of the performance of ER damper and its application to shock absorber. Idealized nonlinear Bingham plastic shear flow model is used to predict the velocity profile between electrodes. Cylindrical dashpot ER damper with moving electrode is constructed and tested under various electric fields. The analytic and experimental results for damping force are compared and discussed. Drop test system using ER damper is prepared to identify transient vibration characteristics. The rebound is eased as the applied electric field increases. When semi-active control algorithm is applied, rebound phenomenon disappears and vibration energy level decays faster than the case of zero electric field.