The clutch with torsional damper is installed on a passenger car with manual transmission, which not only transmits the power generated by engine to the transmission but also absorbs the shock and vibration from the engine. The torsional damper in the clutch dissipates the torsional vibration energy and eliminates the resonance in the driveline but high damping in the damper causes the increase of the vibration level which is against the comfort and durability. In this study, a dynamic model for the passenger car driveline with manual transmission was developed to investigate the vibration and the effects of characteristics of the driveline. With the dynamic model, the vibration characteristics of driveline were examined by the mode analysis and driving simulation, and the effects of hysteresis torque and spring constant were investigated. The vehicle tests with prototype torsional dampers were preformed and the test results showed good agreements with the simulation.