In this paper, a novel MR brake with permanent magnet is developed. This system consists of rotary disk, permanent magnet, spring and MR fluid. Permanent magnets are attached to the rotary disk and moves in the direction of radius. The magnets are linked to rotor axis by spring. As rotation speed increases, the magnets move outward from the center of the system by centrifugal force in the MR fluid. A proper design of stator or case makes the system have unique torque characteristics. The research is performed like following procedures. First, the electromagnetic characteristic of the system is analyzed using Maxwell. Next, torque is calculated using the results of the electromagnetic analysis. Finally, the performance of various types of the brake systems are investigated and compared with each other.